Emerging Markets Correlations

GEMZX Fund

USD 9.49 0.03 0.32%

The current 90-days correlation between Emerging Markets Equity and Tax Managed Large Cap is 0.17 (i.e., Average 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 Equity and DJI is 0.22 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Markets Equity and DJI in the same portfolio, assuming nothing else is changed.

Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Emerging Markets Equity. 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 nation.

Moving together with Emerging Mutual Fund

1.0	GEMYX	Emerging Markets Equity	Pair Corr
0.61	GGBEX	Global Bond Fund	Pair Corr
0.66	GGBFX	Global Bond Fund	Pair Corr
0.7	GIEYX	International Equity	Pair Corr
0.73	GIEZX	International Equity	Pair Corr
0.8	GIIYX	International Equity	Pair Corr
0.84	GIIZX	Guidestone Funds Int	Pair Corr
0.65	GMEYX	Guidestone Funds Impact	Pair Corr
0.65	GMEZX	Guidestone Funds Impact	Pair Corr

Moving against Emerging Mutual Fund

0.61	GLDYX	Low Duration Bond	Pair Corr
0.58	GLDZX	Low Duration Bond	Pair Corr

Related Correlations Analysis

	RETSX	SMYIX	RHSAX	RGAAX	LMUSX	RGELX
RETSX		0.9	0.8	0.71	0.96	0.88	RETSX
SMYIX	0.9		0.85	0.9	0.97	0.94	SMYIX
RHSAX	0.8	0.85		0.83	0.8	0.94	RHSAX
RGAAX	0.71	0.9	0.83		0.83	0.88	RGAAX
LMUSX	0.96	0.97	0.8	0.83		0.92	LMUSX
RGELX	0.88	0.94	0.94	0.88	0.92		RGELX
	RETSX	SMYIX	RHSAX	RGAAX	LMUSX	RGELX

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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	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
RETSX	0.55	0.01	0.05	0.80	(0.56)	1.19	(1.46)	5.40
SMYIX	0.64	(0.02)	(0.03)	0.00	0.00	1.48	(1.31)	4.86
RHSAX	1.03	(0.07)	(0.10)	0.00	0.00	2.22	(3.23)	9.80
RGAAX	0.88	(0.06)	(0.20)	0.00	0.00	1.36	(1.36)	14.74
LMUSX	0.71	0.01	0.03	1.16	(0.67)	1.27	(1.50)	6.30
RGELX	0.56	(0.04)	(0.11)	0.00	0.00	1.03	(1.69)	4.33

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