Emerging Markets Correlations

EMRGX Fund

USD 6.91 0.01 0.14%

The current 90-days correlation between Emerging Markets Growth and Quantitative Longshort Equity is 0.08 (i.e., Significant diversification). 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

Modest diversification

The correlation between Emerging Markets Growth and DJI is 0.28 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Markets Growth and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Emerging Markets Growth. 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 price.

Moving together with Emerging Mutual Fund

1.0	EMGEX	Emerging Markets Growth	Pair Corr
1.0	REFGX	Emerging Markets Growth	Pair Corr
0.95	VEMAX	Vanguard Emerging Markets	Pair Corr
0.95	VEIEX	Vanguard Emerging Markets	Pair Corr
0.94	VEMIX	Vanguard Emerging Markets	Pair Corr
0.94	VEMRX	Vanguard Emerging Markets	Pair Corr
0.98	FWWNX	American Funds New	Pair Corr
0.98	FNFWX	American Funds New	Pair Corr
0.98	NEWFX	New World Fund	Pair Corr
0.98	NWFFX	New World Fund	Pair Corr
0.98	NEWCX	New World Fund	Pair Corr
0.97	ODVYX	Oppenheimer Developing	Pair Corr
0.72	NHS	Neuberger Berman High	Pair Corr
0.69	FXIFX	Fidelity Freedom Index	Pair Corr
0.72	EOD	Allspring Global Dividend	Pair Corr

Moving against Emerging Mutual Fund

0.64

PFHCX

Pacific Funds Small

Pair Corr

Related Correlations Analysis

	GTLSX	BBSCX	FULIX	FTFZX	TSDCX	CFSTX	CWFIX	SUSAX
GTLSX		-0.16	0.63	0.35	0.74	-0.39	0.74	0.64	GTLSX
BBSCX	-0.16		0.25	0.68	0.11	0.91	0.27	0.22	BBSCX
FULIX	0.63	0.25		0.67	0.96	-0.04	0.81	0.98	FULIX
FTFZX	0.35	0.68	0.67		0.6	0.52	0.69	0.66	FTFZX
TSDCX	0.74	0.11	0.96	0.6		-0.2	0.82	0.97	TSDCX
CFSTX	-0.39	0.91	-0.04	0.52	-0.2		0.09	-0.07	CFSTX
CWFIX	0.74	0.27	0.81	0.69	0.82	0.09		0.82	CWFIX
SUSAX	0.64	0.22	0.98	0.66	0.97	-0.07	0.82		SUSAX
	GTLSX	BBSCX	FULIX	FTFZX	TSDCX	CFSTX	CWFIX	SUSAX

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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

SUSAX	+ 0.98	FULIX
SUSAX	+ 0.97	TSDCX
TSDCX	+ 0.96	FULIX
CFSTX	+ 0.91	BBSCX
CWFIX	+ 0.82	TSDCX
SUSAX	+ 0.82	CWFIX

High negative correlations

CFSTX	- 0.39	GTLSX
CFSTX	- 0.2	TSDCX
BBSCX	- 0.16	GTLSX
SUSAX	- 0.07	CFSTX
CFSTX	- 0.04	FULIX

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
GTLSX	0.31	0.01	(0.17)	0.15	0.22	(0.37)	0.71	(0.50)	2.57
BBSCX	0.08	0.00	(0.79)	0.39	0.00	(0.16)	0.24	(0.12)	0.60
FULIX	0.05	0.01	(0.74)	(0.28)	0.00	(0.22)	0.11	(0.11)	0.65
FTFZX	0.07	0.01	(0.59)	(0.13)	0.00	(0.13)	0.19	(0.10)	0.68
TSDCX	0.06	0.01	(0.93)	(0.52)	0.00	(0.17)	0.11	(0.11)	0.55
CFSTX	0.07	0.00	(1.10)	0.18	0.02	(0.09)	0.12	(0.12)	0.50
CWFIX	0.07	0.00	(0.85)	0.19	0.00	(0.12)	0.21	(0.11)	0.42
SUSAX	0.06	0.01	(1.02)	(0.63)	0.00	(0.15)	0.10	(0.10)	0.51

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