Emerging Markets Correlations
The current 90-days correlation between Emerging Markets and Vanguard Growth And is 0.68 (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 0.38 (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.
Emerging |
Moving together with Emerging Mutual Fund
Related Correlations Analysis
| 0.82 | 0.68 | 0.57 | 0.71 | 0.57 | VGIAX | ||
| 0.82 | 0.71 | 0.34 | 0.75 | 0.43 | DIHRX | ||
| 0.68 | 0.71 | 0.12 | 0.75 | 0.08 | LMUSX | ||
| 0.57 | 0.34 | 0.12 | 0.19 | 0.82 | MSSGX | ||
| 0.71 | 0.75 | 0.75 | 0.19 | 0.14 | GMLVX | ||
| 0.57 | 0.43 | 0.08 | 0.82 | 0.14 | OPTCX | ||
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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 | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| VGIAX | 0.65 | 0.01 | (0.01) | 0.04 | 1.00 | 1.21 | 4.40 | |||
| DIHRX | 0.54 | 0.02 | 0.00 | 0.08 | 0.71 | 1.16 | 3.68 | |||
| LMUSX | 0.73 | (0.06) | 0.00 | (0.05) | 0.00 | 1.12 | 4.78 | |||
| MSSGX | 1.61 | 0.29 | 0.15 | 0.42 | 1.70 | 3.81 | 11.74 | |||
| GMLVX | 0.58 | (0.05) | 0.00 | (0.10) | 0.00 | 1.16 | 3.12 | |||
| OPTCX | 0.11 | 0.00 | (0.11) | 0.02 | 0.08 | 0.31 | 0.93 |
Emerging Markets Related Equities
One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Emerging Markets mutual fund to make a market-neutral strategy. Peer analysis of Emerging Markets could also be used in its relative valuation, which is a method of valuing Emerging Markets by comparing valuation metrics with similar companies.
| Risk & Return | Correlation |