Emerging Markets Correlations

REMCX Fund

USD 14.85 0.05 0.34%

The current 90-days correlation between Emerging Markets and International Developed Markets is 0.77 (i.e., Poor 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

Weak diversification

The correlation between Emerging Markets Fund and DJI is 0.36 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Markets Fund and DJI in the same portfolio, assuming nothing else is changed.

Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Emerging Markets Fund. 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 main economic indicators.

Moving together with Emerging Mutual Fund

0.75	RAZAX	Multi Asset Growth	Pair Corr
0.75	RAZCX	Multi Asset Growth	Pair Corr

Related Correlations Analysis

	RNTTX	RREAX	RREYX	RRESX	RRSCX	RRSRX	RALAX	RALCX	RALSX	RALRX
RNTTX		0.74	0.73	0.74	0.74	0.73	0.01	0.04	-0.01	-0.06	RNTTX
RREAX	0.74		1.0	1.0	1.0	1.0	-0.06	-0.03	-0.08	-0.15	RREAX
RREYX	0.73	1.0		1.0	1.0	1.0	-0.05	-0.02	-0.06	-0.13	RREYX
RRESX	0.74	1.0	1.0		1.0	1.0	-0.05	-0.03	-0.07	-0.14	RRESX
RRSCX	0.74	1.0	1.0	1.0		1.0	-0.08	-0.05	-0.09	-0.16	RRSCX
RRSRX	0.73	1.0	1.0	1.0	1.0		-0.05	-0.02	-0.06	-0.14	RRSRX
RALAX	0.01	-0.06	-0.05	-0.05	-0.08	-0.05		1.0	1.0	0.91	RALAX
RALCX	0.04	-0.03	-0.02	-0.03	-0.05	-0.02	1.0		1.0	0.9	RALCX
RALSX	-0.01	-0.08	-0.06	-0.07	-0.09	-0.06	1.0	1.0		0.91	RALSX
RALRX	-0.06	-0.15	-0.13	-0.14	-0.16	-0.14	0.91	0.9	0.91		RALRX
	RNTTX	RREAX	RREYX	RRESX	RRSCX	RRSRX	RALAX	RALCX	RALSX	RALRX

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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

RREYX	+ 1.0	RREAX
RRESX	+ 1.0	RREAX
RRSCX	+ 1.0	RREAX
RRSRX	+ 1.0	RREAX
RRESX	+ 1.0	RREYX
RRSCX	+ 1.0	RREYX

High negative correlations

RALRX	- 0.16	RRSCX
RALRX	- 0.15	RREAX
RALRX	- 0.14	RRSRX
RALRX	- 0.14	RRESX
RALRX	- 0.13	RREYX
RALSX	- 0.09	RRSCX

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
RNTTX	0.59	(0.10)	0.00	(0.12)	0.00	0.00	1.13	(1.21)	3.54
RREAX	0.57	(0.02)	(0.16)	0.02	0.74	(0.59)	1.01	(1.31)	3.18
RREYX	0.58	(0.02)	(0.16)	0.04	0.74	(0.59)	1.00	(1.29)	3.20
RRESX	0.58	(0.02)	(0.16)	0.03	0.74	(0.59)	1.00	(1.32)	3.13
RRSCX	0.58	(0.02)	(0.16)	0.01	0.75	(0.59)	1.00	(1.31)	3.19
RRSRX	0.57	(0.02)	(0.16)	0.03	0.74	(0.59)	0.97	(1.29)	3.19
RALAX	0.42	(0.03)	(0.12)	0.08	0.54	(0.45)	0.78	(0.86)	2.67
RALCX	0.43	(0.03)	(0.13)	0.07	0.53	(0.46)	0.76	(0.84)	2.81
RALSX	0.42	(0.03)	(0.12)	0.08	0.51	(0.47)	0.83	(0.83)	2.68
RALRX	0.42	0.03	(0.14)	2.09	0.53	(0.44)	0.83	(0.83)	2.68

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