Emerging Markets Correlations

DESIX Fund  USD 8.85  0.03  0.34%   
The current 90-days correlation between Emerging Markets Sus and International Small Pany is 0.83 (i.e., Very 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

Good diversification

The correlation between Emerging Markets Sustainabilit and DJI is -0.09 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Markets Sustainabilit and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Emerging Markets Sustainability. 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

  0.82DIHRX Intal High RelativePairCorr
  0.9DILRX Dfa InternationalPairCorr
  0.72DISVX Dfa International SmallPairCorr
  0.94DISMX Dfa InternationalPairCorr
  0.61DOGMX Dfa Oregon MunicipalPairCorr
  0.66DREIX World Core EquityPairCorr
  0.61DRIIX Dimensional 2045 TargetPairCorr
  0.69DRIHX Dimensional 2040 TargetPairCorr
  0.76DRIGX Dimensional 2035 TargetPairCorr
  0.78DRIWX Dimensional 2030 TargetPairCorr
  0.73DRIUX Dimensional 2025 TargetPairCorr
  0.73DRIRX Dimensional 2020 TargetPairCorr
  0.66DRIQX Dimensional 2015 TargetPairCorr
  0.67DAADX Dfa Emerging MarketsPairCorr
  0.88DSCLX Dfa International SocialPairCorr
  0.63DSHGX Dfa Selectively HedgedPairCorr
  0.7DSSMX Dfa Selective StatePairCorr
  0.8DCMSX Dfa Commodity StrategyPairCorr
  0.95DEMSX Emerging Markets SmallPairCorr
  0.98DEMGX Emerging Markets TargetedPairCorr

Related Correlations Analysis

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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   
DFIVXDFISX
DFIVXDISVX
DISVXDFISX
DFSCXDFLVX
DFLVXDFISX
DFLVXDFIVX
  
High negative correlations   
DFSCXDISVX
DFSCXDFIVX
DFSCXDFISX

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.