Parametric Emerging Correlations

EIEMX Fund  USD 14.83  0.09  0.61%   
The current 90-days correlation between Parametric Emerging and Qs Large Cap is 0.35 (i.e., Weak diversification). The correlation of Parametric Emerging 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.

Parametric Emerging Correlation With Market

Good diversification

The correlation between Parametric Emerging Markets and DJI is -0.03 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Parametric Emerging Markets 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 Parametric Emerging Markets. 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 population.

Moving together with Parametric Mutual Fund

  1.0EAEMX Parametric EmergingPairCorr
  0.83EVCGX Eaton Vance GreaterPairCorr
  0.64EIDIX Eaton Vance TaxPairCorr
  0.94VEMAX Vanguard Emerging MarketsPairCorr
  0.93VEIEX Vanguard Emerging MarketsPairCorr
  0.93VEMIX Vanguard Emerging MarketsPairCorr
  0.93VEMRX Vanguard Emerging MarketsPairCorr
  0.98FWWNX American Funds NewPairCorr
  0.98FNFWX American Funds NewPairCorr
  0.94NEWFX New World FundPairCorr
  0.94NWFFX New World FundPairCorr
  0.94NEWCX New World FundPairCorr
  0.92ODVYX Oppenheimer DevelopingPairCorr
  0.8BISMX Brandes InternationalPairCorr

Moving against Parametric Mutual Fund

  0.46PG Procter GamblePairCorr
  0.32TRV The Travelers Companies Fiscal Year End 17th of January 2025 PairCorr

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   
OPTCXLMUSX
ABVCXLMUSX
OPTCXABVCX
TQAAXLMUSX
TQAAXABVCX
TQAAXOPTCX
  
High negative correlations   
MFTFXLMUSX
MFTFXOPTCX
MFTFXABVCX
MFTFXTQAAX

Risk-Adjusted Indicators

There is a big difference between Parametric Mutual Fund performing well and Parametric Emerging 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 Parametric Emerging's 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.