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A global investor can reduce overall portfolio risk simply by holding instruments in multiple markets. The correlations of major world markets vary considerably through time and are highest during periods of economic integration and collaboration. In other words, investors can reduce their exposure to country risk by holding a diversified portfolio of global assets.
Investors' overexposure to a single market brings diversification risk in a portfolio, leaving it vulnerable to losses in that economy and underexposes it to markets in other parts of the world. For the same reason, if you are currently managing a portfolio composed of equities from multiple global markets, you don't want your positions to be highly correlated, even at the expense of accepting lower expected returns. Generally speaking, low correlations across different markets is the main idea behind global portfolio diversification, and without it, there's no benefit to the rebalancing of internationally exposed portfolios. The correlation table belows shows 30 days (very short) correlation pairs for indexes from 30 major world markets.
 

DOW: US
NYSE: US
Nasdaq: US
SP 500: US
NASDAQ UK: UK
DAX: DE
Shanghai: CN
Hang Seng: HK
BSE: IN
IPC: MX
CAC 40: FR
Bovespa: BR
Seoul Comp: KR
Taiwan Wtd: TW
SPTSX Comp: CA
MerVal: AR
NZSE: NZ
ATX: AT
OSE All: NO
Bursa Malaysia: MI
Madrid Gnrl: ES
Stockholm: SE
Swiss Mrt: CH
Israel Index: IL
Jakarta Comp: ID
Straits Tms: SG
All Ords: AU
ISEQ: IE
NIKKEI 225: JP
Russia TR: RU
IBEX 35: ES
NASDAQ Italy: IT
Greece TR: GR
OMX COPENHAGEN: DK
EURONEXT BEL-20: BE
AEX Amsterdam: NL
Russell 2000 : US
OMXVGI: LT
NQFI: FI
NQEGT: EG
NQTH: TH
OMXRGI: LV
NQPH: PH
XU100: TR
DOW: US
0.890.850.91-0.350.720.070.580.570.820.750.630.740.430.850.640.760.40.56-0.050.690.830.830.65-0.060.310.80.510.490.630.710.360.090.750.740.130.720.820.510.61-0.540.4-0.60.54
DOW: US
NYSE: US
0.890.70.82-0.060.780.00.690.560.70.840.720.720.580.70.670.570.60.760.20.550.740.690.530.260.350.60.750.620.720.750.420.390.590.760.120.90.630.550.57-0.280.29-0.380.62
NYSE: US
Nasdaq: US
0.850.70.98-0.620.67-0.010.410.520.740.640.620.610.190.950.640.860.130.39-0.440.780.950.940.75-0.370.00.870.390.250.540.740.24-0.280.930.760.290.590.940.390.61-0.780.51-0.760.41
Nasdaq: US
SP 500: US
0.910.820.98-0.510.73-0.010.520.550.780.750.690.670.310.940.690.830.280.51-0.290.770.950.940.71-0.220.10.860.50.390.610.780.27-0.120.890.80.270.710.90.440.63-0.690.48-0.720.49
SP 500: US
NASDAQ UK: UK
-0.35-0.06-0.62-0.51-0.1-0.23-0.13-0.32-0.44-0.1-0.26-0.220.03-0.54-0.31-0.660.30.080.56-0.53-0.47-0.52-0.320.540.06-0.630.20.12-0.12-0.140.40.65-0.54-0.14-0.210.05-0.630.21-0.310.87-0.240.73-0.05
NASDAQ UK: UK
DAX: DE
0.720.780.670.73-0.1-0.190.460.330.490.810.440.50.290.730.320.380.560.60.030.480.790.690.450.010.280.580.710.470.420.870.420.230.680.90.20.80.60.350.36-0.260.38-0.270.28
DAX: DE
Shanghai: CN
0.070.0-0.01-0.01-0.23-0.190.170.480.25-0.160.240.20.260.00.180.21-0.190.210.12-0.11-0.12-0.11-0.040.150.420.23-0.11-0.12-0.02-0.37-0.280.01-0.12-0.38-0.12-0.140.140.220.19-0.23-0.32-0.30.12
Shanghai: CN
Hang Seng: HK
0.580.690.410.52-0.130.460.170.480.590.710.740.590.840.30.70.410.590.780.420.480.440.340.090.550.520.310.590.670.650.46-0.070.430.20.360.00.650.280.150.41-0.3-0.07-0.330.62
Hang Seng: HK
BSE: IN
0.570.560.520.55-0.320.330.480.480.590.350.580.570.420.490.540.550.120.47-0.030.380.450.390.30.080.280.510.360.150.480.290.030.040.360.280.150.430.540.410.53-0.510.05-0.390.38
BSE: IN
IPC: MX
0.820.70.740.78-0.440.490.250.590.590.620.670.690.490.70.660.710.260.55-0.090.640.70.70.490.010.250.750.370.440.510.540.150.00.60.490.150.580.670.430.57-0.580.2-0.610.43
IPC: MX
CAC 40: FR
0.750.840.640.75-0.10.81-0.160.710.350.620.620.560.530.610.530.420.770.720.210.60.720.70.340.240.30.510.740.650.640.820.230.30.530.80.20.830.490.220.34-0.280.33-0.340.45
CAC 40: FR
Bovespa: BR
0.630.720.620.69-0.260.440.240.740.580.670.620.580.650.480.870.650.320.750.080.530.620.510.440.340.20.460.610.550.720.520.070.210.450.460.180.630.510.430.61-0.450.13-0.480.72
Bovespa: BR
Seoul Comp: KR
0.740.720.610.67-0.220.50.20.590.570.690.560.580.570.630.560.650.370.530.190.610.560.610.450.120.490.560.370.350.580.470.30.080.480.45-0.040.590.570.480.67-0.39-0.02-0.470.55
Seoul Comp: KR
Taiwan Wtd: TW
0.430.580.190.310.030.290.260.840.420.490.530.650.570.120.560.30.510.720.550.340.230.170.020.630.60.150.460.590.560.27-0.020.470.010.18-0.110.530.10.190.35-0.06-0.26-0.140.64
Taiwan Wtd: TW
SPTSX Comp: CA
0.850.70.950.94-0.540.730.00.30.490.70.610.480.630.120.480.780.120.34-0.420.690.910.930.72-0.420.070.90.350.20.410.720.34-0.270.940.780.210.620.920.450.58-0.680.46-0.70.3
SPTSX Comp: CA
MerVal: AR
0.640.670.640.69-0.310.320.180.70.540.660.530.870.560.560.480.660.170.660.040.480.580.510.470.250.160.480.480.450.720.410.060.150.430.370.130.520.560.440.66-0.520.19-0.560.79
MerVal: AR
NZSE: NZ
0.760.570.860.83-0.660.380.210.410.550.710.420.650.650.30.780.66-0.020.31-0.390.80.780.80.7-0.290.050.780.250.180.530.50.05-0.30.790.470.150.390.850.340.58-0.810.29-0.770.48
NZSE: NZ
ATX: AT
0.40.60.130.280.30.56-0.190.590.120.260.770.320.370.510.120.17-0.020.590.60.340.260.24-0.040.490.390.040.660.640.480.530.170.590.030.5-0.020.64-0.020.010.030.160.020.140.24
ATX: AT
OSE All: NO
0.560.760.390.510.080.60.210.780.470.550.720.750.530.720.340.660.310.590.450.290.50.350.280.570.450.270.820.540.680.540.170.550.250.490.050.740.320.420.46-0.140.02-0.20.64
OSE All: NO
Bursa Malaysia: MI
-0.050.2-0.44-0.290.560.030.120.42-0.03-0.090.210.080.190.55-0.420.04-0.390.60.45-0.26-0.38-0.4-0.380.80.66-0.410.30.370.27-0.150.040.76-0.57-0.18-0.240.19-0.430.03-0.080.53-0.420.40.31
Bursa Malaysia: MI
Madrid Gnrl: ES
0.690.550.780.77-0.530.48-0.110.480.380.640.60.530.610.340.690.480.80.340.29-0.260.770.780.53-0.230.030.620.340.340.550.670.03-0.240.710.610.210.490.640.080.36-0.680.27-0.590.3
Madrid Gnrl: ES
Stockholm: SE
0.830.740.950.95-0.470.79-0.120.440.450.70.720.620.560.230.910.580.780.260.5-0.380.770.920.73-0.28-0.020.790.560.310.520.870.3-0.150.930.880.260.690.860.380.55-0.660.5-0.640.38
Stockholm: SE
Swiss Mrt: CH
0.830.690.940.94-0.520.69-0.110.340.390.70.70.510.610.170.930.510.80.240.35-0.40.780.920.74-0.390.00.840.390.250.490.790.29-0.270.930.810.230.60.860.350.52-0.660.51-0.680.33
Swiss Mrt: CH
Israel Index: IL
0.650.530.750.71-0.320.45-0.040.090.30.490.340.440.450.020.720.470.7-0.040.28-0.380.530.730.74-0.39-0.120.620.340.00.430.550.39-0.210.770.590.150.340.790.60.53-0.540.47-0.520.39
Israel Index: IL
Jakarta Comp: ID
-0.060.26-0.37-0.220.540.010.150.550.080.010.240.340.120.63-0.420.25-0.290.490.570.8-0.23-0.28-0.39-0.390.45-0.390.440.560.33-0.06-0.070.76-0.49-0.16-0.10.31-0.430.090.010.47-0.420.340.39
Jakarta Comp: ID
Straits Tms: SG
0.310.350.00.10.060.280.420.520.280.250.30.20.490.60.070.160.050.390.450.660.03-0.020.0-0.120.450.130.190.320.20.00.050.43-0.110.01-0.20.30.080.150.270.08-0.34-0.070.34
Straits Tms: SG
All Ords: AU
0.80.60.870.86-0.630.580.230.310.510.750.510.460.560.150.90.480.780.040.27-0.410.620.790.840.62-0.390.130.180.230.30.520.19-0.250.840.570.230.460.90.390.55-0.710.38-0.750.23
All Ords: AU
ISEQ: IE
0.510.750.390.50.20.71-0.110.590.360.370.740.610.370.460.350.480.250.660.820.30.340.560.390.340.440.190.180.540.620.730.250.520.340.670.120.770.280.360.29-0.060.2-0.030.45
ISEQ: IE
NIKKEI 225: JP
0.490.620.250.390.120.47-0.120.670.150.440.650.550.350.590.20.450.180.640.540.370.340.310.250.00.560.320.230.540.450.430.140.510.170.410.140.630.120.160.230.080.08-0.080.46
NIKKEI 225: JP
Russia TR: RU
0.630.720.540.61-0.120.42-0.020.650.480.510.640.720.580.560.410.720.530.480.680.270.550.520.490.430.330.20.30.620.450.530.080.230.350.490.180.590.440.340.46-0.350.24-0.380.73
Russia TR: RU
IBEX 35: ES
0.710.750.740.78-0.140.87-0.370.460.290.540.820.520.470.270.720.410.50.530.54-0.150.670.870.790.55-0.060.00.520.730.430.530.370.10.750.940.210.790.580.290.34-0.350.46-0.320.28
IBEX 35: ES
NASDAQ Italy: IT
0.360.420.240.270.40.42-0.28-0.070.030.150.230.070.3-0.020.340.060.050.170.170.040.030.30.290.39-0.070.050.190.250.140.080.370.290.320.480.010.380.250.660.290.250.270.130.19
NASDAQ Italy: IT
Greece TR: GR
0.090.39-0.28-0.120.650.230.010.430.040.00.30.210.080.47-0.270.15-0.30.590.550.76-0.24-0.15-0.27-0.210.760.43-0.250.520.510.230.10.29-0.340.05-0.20.4-0.270.24-0.020.54-0.20.450.3
Greece TR: GR
OMX COPENHAGEN: DK
0.750.590.930.89-0.540.68-0.120.20.360.60.530.450.480.010.940.430.790.030.25-0.570.710.930.930.77-0.49-0.110.840.340.170.350.750.32-0.340.780.270.520.890.390.53-0.660.53-0.650.23
OMX COPENHAGEN: DK
EURONEXT BEL-20: BE
0.740.760.760.8-0.140.9-0.380.360.280.490.80.460.450.180.780.370.470.50.49-0.180.610.880.810.59-0.160.010.570.670.410.490.940.480.050.780.240.770.640.340.39-0.330.52-0.30.29
EURONEXT BEL-20: BE
AEX Amsterdam: NL
0.130.120.290.27-0.210.2-0.120.00.150.150.20.18-0.04-0.110.210.130.15-0.020.05-0.240.210.260.230.15-0.1-0.20.230.120.140.180.210.01-0.20.270.240.080.29-0.020.09-0.230.42-0.290.07
AEX Amsterdam: NL
Russell 2000 : US
0.720.90.590.710.050.8-0.140.650.430.580.830.630.590.530.620.520.390.640.740.190.490.690.60.340.310.30.460.770.630.590.790.380.40.520.770.080.450.420.41-0.150.22-0.240.46
Russell 2000 : US
OMXVGI: LT
0.820.630.940.9-0.630.60.140.280.540.670.490.510.570.10.920.560.85-0.020.32-0.430.640.860.860.79-0.430.080.90.280.120.440.580.25-0.270.890.640.290.450.430.62-0.770.51-0.780.38
OMXVGI: LT
NQFI: FI
0.510.550.390.440.210.350.220.150.410.430.220.430.480.190.450.440.340.010.420.030.080.380.350.60.090.150.390.360.160.340.290.660.240.390.34-0.020.420.430.55-0.040.12-0.160.46
NQFI: FI
NQEGT: EG
0.610.570.610.63-0.310.360.190.410.530.570.340.610.670.350.580.660.580.030.46-0.080.360.550.520.530.010.270.550.290.230.460.340.29-0.020.530.390.090.410.620.55-0.390.08-0.450.53
NQEGT: EG
NQTH: TH
-0.54-0.28-0.78-0.690.87-0.26-0.23-0.3-0.51-0.58-0.28-0.45-0.39-0.06-0.68-0.52-0.810.16-0.140.53-0.68-0.66-0.66-0.540.470.08-0.71-0.060.08-0.35-0.350.250.54-0.66-0.33-0.23-0.15-0.77-0.04-0.39-0.330.8-0.23
NQTH: TH
OMXRGI: LV
0.40.290.510.48-0.240.38-0.32-0.070.050.20.330.13-0.02-0.260.460.190.290.020.02-0.420.270.50.510.47-0.42-0.340.380.20.080.240.460.27-0.20.530.520.420.220.510.120.08-0.33-0.340.15
OMXRGI: LV
NQPH: PH
-0.6-0.38-0.76-0.720.73-0.27-0.3-0.33-0.39-0.61-0.34-0.48-0.47-0.14-0.7-0.56-0.770.14-0.20.4-0.59-0.64-0.68-0.520.34-0.07-0.75-0.03-0.08-0.38-0.320.130.45-0.65-0.3-0.29-0.24-0.78-0.16-0.450.8-0.34-0.35
NQPH: PH
XU100: TR
0.540.620.410.49-0.050.280.120.620.380.430.450.720.550.640.30.790.480.240.640.310.30.380.330.390.390.340.230.450.460.730.280.190.30.230.290.070.460.380.460.53-0.230.15-0.35
XU100: TR
DOW: US
NYSE: US
Nasdaq: US
SP 500: US
NASDAQ UK: UK
DAX: DE
Shanghai: CN
Hang Seng: HK
BSE: IN
IPC: MX
CAC 40: FR
Bovespa: BR
Seoul Comp: KR
Taiwan Wtd: TW
SPTSX Comp: CA
MerVal: AR
NZSE: NZ
ATX: AT
OSE All: NO
Bursa Malaysia: MI
Madrid Gnrl: ES
Stockholm: SE
Swiss Mrt: CH
Israel Index: IL
Jakarta Comp: ID
Straits Tms: SG
All Ords: AU
ISEQ: IE
NIKKEI 225: JP
Russia TR: RU
IBEX 35: ES
NASDAQ Italy: IT
Greece TR: GR
OMX COPENHAGEN: DK
EURONEXT BEL-20: BE
AEX Amsterdam: NL
Russell 2000 : US
OMXVGI: LT
NQFI: FI
NQEGT: EG
NQTH: TH
OMXRGI: LV
NQPH: PH
XU100: TR

Correlation Matchups

High positive correlations

Insignificant Correlation

High negative correlations