Emerging Markets Correlations

AEDHX Fund

USD 8.91 0.01 0.11%

The correlation of Emerging Markets is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Emerging Markets Correlation With Market

Average diversification

The correlation between Emerging Markets Debt and DJI is 0.16 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Markets Debt and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Emerging Markets Debt. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in rate.

Moving together with Emerging Mutual Fund

0.82	CDBCX	Diversified Bond	Pair Corr
0.87	TWACX	Short Term Government	Pair Corr
0.88	TWARX	Short Term Government	Pair Corr
0.89	TWAVX	Short Term Government	Pair Corr
0.91	TWGAX	International Growth	Pair Corr
0.9	TWIEX	International Growth	Pair Corr
0.62	TWTCX	Intermediate Term Tax	Pair Corr
0.89	TWUSX	Short Term Government	Pair Corr
0.9	TWUOX	Short Term Government	Pair Corr

Moving against Emerging Mutual Fund

0.64	AMEIX	Equity Growth	Pair Corr
0.61	TWCCX	Ultra Fund C	Pair Corr
0.58	AMGIX	Income Growth	Pair Corr
0.58	TWADX	Value Fund A	Pair Corr
0.58	TWCAX	Select Fund A	Pair Corr
0.56	TWCIX	Select Fund Investor	Pair Corr
0.55	TWCGX	Growth Fund Investor	Pair Corr
0.51	AMDVX	Mid Cap Value	Pair Corr
0.51	AMVYX	Mid Cap Value	Pair Corr
0.51	AMVGX	Mid Cap Value	Pair Corr
0.5	AMVRX	Mid Cap Value	Pair Corr
0.65	TWHIX	Heritage Fund Investor	Pair Corr
0.61	TWCUX	Ultra Fund Investor	Pair Corr
0.58	TWGIX	Growth Fund I	Pair Corr
0.58	TWSIX	Select Fund I	Pair Corr
0.57	TWRCX	Growth Fund C	Pair Corr
0.52	TWEAX	Equity Income	Pair Corr
0.51	TWEIX	Equity Income	Pair Corr
0.4	TWSAX	Strategic Allocation	Pair Corr
0.32	TWSMX	Strategic Allocation	Pair Corr
0.63	TWUAX	Ultra Fund A	Pair Corr
0.63	TWUIX	Ultra Fund I	Pair Corr
0.58	TWVLX	Value Fund Investor	Pair Corr
0.57	ANOHX	American Century Small	Pair Corr
0.56	ANORX	Small Cap Growth	Pair Corr
0.56	ANONX	Small Cap Growth	Pair Corr

Related Correlations Analysis

	REMEX	REMAX	REMCX	UIEMX	ELMZX	ELMYX	ELMIX	REMSX	REMYX
REMEX		0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	REMEX
REMAX	0.0		1.0	0.95	-0.19	-0.19	-0.2	1.0	1.0	REMAX
REMCX	0.0	1.0		0.95	-0.2	-0.21	-0.21	1.0	1.0	REMCX
UIEMX	0.0	0.95	0.95		-0.35	-0.33	-0.33	0.95	0.94	UIEMX
ELMZX	0.0	-0.19	-0.2	-0.35		0.84	0.84	-0.19	-0.18	ELMZX
ELMYX	0.0	-0.19	-0.21	-0.33	0.84		1.0	-0.19	-0.19	ELMYX
ELMIX	0.0	-0.2	-0.21	-0.33	0.84	1.0		-0.19	-0.19	ELMIX
REMSX	0.0	1.0	1.0	0.95	-0.19	-0.19	-0.19		1.0	REMSX
REMYX	0.0	1.0	1.0	0.94	-0.18	-0.19	-0.19	1.0		REMYX
	REMEX	REMAX	REMCX	UIEMX	ELMZX	ELMYX	ELMIX	REMSX	REMYX

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

REMCX	+ 1.0	REMAX
REMSX	+ 1.0	REMAX
REMYX	+ 1.0	REMAX
REMSX	+ 1.0	REMCX
REMYX	+ 1.0	REMCX
ELMIX	+ 1.0	ELMYX

High negative correlations

ELMZX	- 0.35	UIEMX
ELMIX	- 0.33	UIEMX
ELMYX	- 0.33	UIEMX
ELMIX	- 0.21	REMCX
ELMYX	- 0.21	REMCX
ELMZX	- 0.2	REMCX

Risk-Adjusted Indicators

There is a big difference between Emerging Mutual Fund performing well and Emerging Markets Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Emerging Markets' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
REMEX	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
REMAX	0.72	0.02	(0.05)	0.18	0.87	(0.75)	1.78	(1.24)	5.00
REMCX	0.71	0.02	(0.06)	0.17	0.85	(0.76)	1.76	(1.24)	4.98
UIEMX	0.68	(0.01)	(0.11)	0.07	0.81	(0.73)	1.30	(1.59)	4.60
ELMZX	0.80	0.11	(0.06)	(0.08)	1.00	(0.80)	1.78	(1.58)	4.35
ELMYX	0.80	0.02	(0.09)	(0.42)	1.03	(0.80)	1.77	(1.58)	4.36
ELMIX	0.80	0.02	(0.09)	(0.35)	1.03	(0.81)	1.78	(1.53)	4.35
REMSX	0.71	0.02	(0.05)	0.18	0.83	(0.75)	1.76	(1.29)	4.96
REMYX	0.71	0.02	(0.05)	0.19	0.85	(0.75)	1.76	(1.23)	5.01

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