Emerging Economies Correlations

VCGEX Fund

USD 6.45 0.03 0.47%

The current 90-days correlation between Emerging Economies and Mid Cap Index is 0.36 (i.e., Weak diversification). The correlation of Emerging Economies 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 Economies Correlation With Market

Weak diversification

The correlation between Emerging Economies Fund and DJI is 0.33 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Economies 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 Economies 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 income.

Moving together with Emerging Mutual Fund

0.8	VCINX	International Growth	Pair Corr
0.75	VGLSX	Global Strategy	Pair Corr
0.61	VLCGX	Large Capital Growth	Pair Corr
0.61	VLSMX	Valic Company I	Pair Corr
0.98	VEMAX	Vanguard Emerging Markets	Pair Corr
0.98	VEIEX	Vanguard Emerging Markets	Pair Corr
0.98	VEMIX	Vanguard Emerging Markets	Pair Corr
0.98	VEMRX	Vanguard Emerging Markets	Pair Corr

Related Correlations Analysis

	VMIDX	VMSGX	VAPPX	VSRDX	VSTIX	VSSVX	VBCVX	VCAAX	VCBDX	VCBCX
VMIDX		0.98	0.96	0.95	0.96	0.95	0.97	0.93	-0.7	0.95	VMIDX
VMSGX	0.98		0.97	0.95	0.97	0.9	0.97	0.93	-0.72	0.96	VMSGX
VAPPX	0.96	0.97		0.98	0.99	0.85	0.95	0.95	-0.77	1.0	VAPPX
VSRDX	0.95	0.95	0.98		0.99	0.83	0.96	0.98	-0.68	0.98	VSRDX
VSTIX	0.96	0.97	0.99	0.99		0.85	0.97	0.98	-0.72	0.99	VSTIX
VSSVX	0.95	0.9	0.85	0.83	0.85		0.89	0.82	-0.6	0.85	VSSVX
VBCVX	0.97	0.97	0.95	0.96	0.97	0.89		0.94	-0.73	0.94	VBCVX
VCAAX	0.93	0.93	0.95	0.98	0.98	0.82	0.94		-0.58	0.96	VCAAX
VCBDX	-0.7	-0.72	-0.77	-0.68	-0.72	-0.6	-0.73	-0.58		-0.75	VCBDX
VCBCX	0.95	0.96	1.0	0.98	0.99	0.85	0.94	0.96	-0.75		VCBCX
	VMIDX	VMSGX	VAPPX	VSRDX	VSTIX	VSSVX	VBCVX	VCAAX	VCBDX	VCBCX

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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

VCBCX	+ 1.0	VAPPX
VSTIX	+ 0.99	VAPPX
VSTIX	+ 0.99	VSRDX
VCBCX	+ 0.99	VSTIX
VMSGX	+ 0.98	VMIDX
VSRDX	+ 0.98	VAPPX

High negative correlations

VCBDX	- 0.77	VAPPX
VCBCX	- 0.75	VCBDX
VCBDX	- 0.73	VBCVX
VCBDX	- 0.72	VSTIX
VCBDX	- 0.72	VMSGX
VCBDX	- 0.7	VMIDX

Risk-Adjusted Indicators

There is a big difference between Emerging Mutual Fund performing well and Emerging Economies 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 Economies' 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
VMIDX	0.72	0.00	0.03	0.12	0.64	(0.79)	1.73	(1.19)	5.20
VMSGX	0.71	0.06	0.08	0.18	0.64	(0.81)	1.60	(1.17)	4.39
VAPPX	0.75	0.01	0.01	0.13	1.17	(0.73)	1.50	(2.13)	4.99
VSRDX	0.58	(0.01)	(0.04)	0.11	0.65	(0.62)	1.12	(1.39)	3.62
VSTIX	0.56	0.00	(0.02)	0.12	0.65	(0.60)	1.17	(1.31)	3.85
VSSVX	0.86	(0.03)	0.02	0.10	0.75	(1.04)	1.84	(1.23)	7.23
VBCVX	0.53	0.02	0.01	0.15	0.32	(0.62)	1.18	(0.88)	3.80
VCAAX	0.36	(0.01)	(0.13)	0.09	0.39	(0.42)	0.74	(0.84)	2.63
VCBDX	0.23	(0.02)	0.00	0.52	0.00	0.00	0.41	(0.61)	1.42
VCBCX	0.72	0.00	(0.01)	0.12	1.03	(0.69)	1.69	(2.18)	4.92

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