Emerging Markets Correlations

AMKIX Fund

USD 15.14 0.03 0.20%

The current 90-days correlation between Emerging Markets and Templeton Developing Markets is 0.92 (i.e., Almost no 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

Average diversification

The correlation between Emerging Markets Fund and DJI is 0.12 (i.e., Average 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 Trending Equities 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 gross domestic product.

Moving together with Emerging Mutual Fund

0.63	TWBIX	Balanced Fund Investor	Pair Corr
0.72	TWCUX	Ultra Fund Investor	Pair Corr
0.83	TWMIX	Emerging Markets	Pair Corr
0.62	TWTIX	Intermediate Term Tax	Pair Corr
0.62	TWWOX	Intermediate Term Tax	Pair Corr

Related Correlations Analysis

	TEDMX	TDMTX	GCMAX	SMBYX	GEMAX	FGADX	RLITX	LISIX	SEQFX	HFCIX
TEDMX		1.0	0.05	-0.39	0.87	-0.01	0.08	0.07	0.82	-0.13	TEDMX
TDMTX	1.0		0.05	-0.39	0.88	-0.02	0.07	0.07	0.82	-0.12	TDMTX
GCMAX	0.05	0.05		0.77	0.11	-0.48	0.58	0.58	0.1	0.5	GCMAX
SMBYX	-0.39	-0.39	0.77		-0.15	-0.45	0.45	0.45	-0.18	0.57	SMBYX
GEMAX	0.87	0.88	0.11	-0.15		-0.07	0.08	0.08	0.77	0.04	GEMAX
FGADX	-0.01	-0.02	-0.48	-0.45	-0.07		-0.31	-0.31	0.11	-0.67	FGADX
RLITX	0.08	0.07	0.58	0.45	0.08	-0.31		1.0	0.01	0.33	RLITX
LISIX	0.07	0.07	0.58	0.45	0.08	-0.31	1.0		0.01	0.33	LISIX
SEQFX	0.82	0.82	0.1	-0.18	0.77	0.11	0.01	0.01		-0.11	SEQFX
HFCIX	-0.13	-0.12	0.5	0.57	0.04	-0.67	0.33	0.33	-0.11		HFCIX
	TEDMX	TDMTX	GCMAX	SMBYX	GEMAX	FGADX	RLITX	LISIX	SEQFX	HFCIX

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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

TDMTX	+ 1.0	TEDMX
LISIX	+ 1.0	RLITX
GEMAX	+ 0.88	TDMTX
GEMAX	+ 0.87	TEDMX
SEQFX	+ 0.82	TEDMX
SEQFX	+ 0.82	TDMTX

High negative correlations

HFCIX	- 0.67	FGADX
FGADX	- 0.48	GCMAX
FGADX	- 0.45	SMBYX
SMBYX	- 0.39	TDMTX
SMBYX	- 0.39	TEDMX
LISIX	- 0.31	FGADX

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
TEDMX	0.80	0.02	(0.02)	0.19	1.00	(0.84)	1.54	(1.38)	4.85
TDMTX	0.79	0.03	(0.02)	0.21	0.96	(0.84)	1.53	(1.17)	4.85
GCMAX	0.85	(0.18)	0.00	(0.35)	0.00	0.00	1.23	(1.61)	13.26
SMBYX	0.79	(0.19)	0.00	(0.21)	0.00	0.00	1.30	(1.53)	8.67
GEMAX	0.73	0.04	(0.01)	0.42	0.93	(0.81)	1.38	(1.26)	4.98
FGADX	1.76	0.24	0.09	0.29	2.34	(1.77)	3.50	(4.67)	10.57
RLITX	0.92	(0.32)	0.00	(0.52)	0.00	0.00	1.00	(1.13)	22.21
LISIX	0.92	(0.32)	0.00	(0.52)	0.00	0.00	1.00	(1.13)	22.18
SEQFX	0.65	0.00	(0.02)	0.06	0.83	(0.74)	1.27	(1.11)	4.46
HFCIX	2.06	(0.42)	0.00	(0.20)	0.00	0.00	3.27	(3.97)	36.40

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