Emerging Markets Correlations

UIEMX Fund

USD 20.71 0.26 1.27%

The current 90-days correlation between Emerging Markets and Fbjygx is -0.11 (i.e., Good 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 Fund and DJI is 0.23 (i.e., Modest 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 World Market Map 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 various price indices.

Moving together with Emerging Mutual Fund

0.85	VEMAX	Vanguard Emerging Markets	Pair Corr
0.85	VEIEX	Vanguard Emerging Markets	Pair Corr
0.86	VEMIX	Vanguard Emerging Markets	Pair Corr
0.86	VEMRX	Vanguard Emerging Markets	Pair Corr
0.76	FWWNX	American Funds New	Pair Corr
0.76	FNFWX	American Funds New	Pair Corr
0.75	NEWFX	New World Fund	Pair Corr
0.75	NWFFX	New World Fund	Pair Corr
0.74	NEWCX	New World Fund	Pair Corr
0.92	ODVYX	Oppenheimer Developing	Pair Corr

Moving against Emerging Mutual Fund

0.43	BAC	Bank of America Sell-off Trend	Pair Corr
0.32	WMT	Walmart Aggressive Push	Pair Corr
0.32	CSCO	Cisco Systems	Pair Corr

Related Correlations Analysis

	FBJYGX	MSSGX	FXYBJX	OPTCX	FKHEMX	MFTFX	FURYAX
FBJYGX		-0.3	0.51	-0.39	0.75	-0.46	0.71	FBJYGX
MSSGX	-0.3		-0.11	0.94	-0.17	0.83	-0.19	MSSGX
FXYBJX	0.51	-0.11		-0.21	0.56	-0.41	0.64	FXYBJX
OPTCX	-0.39	0.94	-0.21		-0.28	0.8	-0.3	OPTCX
FKHEMX	0.75	-0.17	0.56	-0.28		-0.34	0.98	FKHEMX
MFTFX	-0.46	0.83	-0.41	0.8	-0.34		-0.39	MFTFX
FURYAX	0.71	-0.19	0.64	-0.3	0.98	-0.39		FURYAX
	FBJYGX	MSSGX	FXYBJX	OPTCX	FKHEMX	MFTFX	FURYAX

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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

FURYAX	+ 0.98	FKHEMX
OPTCX	+ 0.94	MSSGX
MFTFX	+ 0.83	MSSGX
MFTFX	+ 0.8	OPTCX
FKHEMX	+ 0.75	FBJYGX
FURYAX	+ 0.71	FBJYGX

High negative correlations

MFTFX	- 0.46	FBJYGX
MFTFX	- 0.41	FXYBJX
FURYAX	- 0.39	MFTFX
OPTCX	- 0.39	FBJYGX
MFTFX	- 0.34	FKHEMX
FURYAX	- 0.3	OPTCX

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
FBJYGX	0.51	0.16	0.12	2.88	0.36	(0.59)	1.27	(0.76)	2.57
MSSGX	1.58	0.38	0.19	0.76	1.51	(2.01)	3.81	(2.32)	11.74
FXYBJX	0.40	0.08	0.00	2.89	0.00	0.00	1.16	(1.53)	1.72
OPTCX	0.13	0.02	(0.29)	0.54	0.00	(0.22)	0.31	(0.31)	1.35
FKHEMX	0.62	0.24	0.00	5.45	0.00	0.00	1.42	(2.41)	3.83
MFTFX	1.01	0.12	0.01	(0.90)	1.42	(1.00)	1.82	(2.26)	5.15
FURYAX	0.54	0.22	0.16	(27.46)	0.34	(0.74)	1.21	(1.31)	2.27

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