Emerging Markets Correlations

PAEMX Fund

USD 8.66 0.03 0.35%

The current 90-days correlation between Emerging Markets Bond and Fidelity New Markets is 0.93 (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 Bond and DJI is 0.11 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Markets Bond and DJI in the same portfolio, assuming nothing else is changed.

Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Emerging Markets Bond. 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 Emerging Mutual Fund

0.65	PFATX	Pimco Fundamental	Pair Corr
0.65	PFGAX	Long Term Government	Pair Corr
0.64	PFGCX	Long Term Government	Pair Corr
0.62	PFIAX	Pimco Floating Income	Pair Corr
0.81	PFMIX	Municipal Bond	Pair Corr
0.67	PFNCX	Pimco Floating Income	Pair Corr
0.62	PFNIX	Pimco Low Duration	Pair Corr
0.64	PFRCX	Foreign Bond	Pair Corr
0.62	PFRMX	Pimco Inflation Response	Pair Corr
0.67	PFTPX	Pimco Floating Income	Pair Corr
0.79	PFSIX	Pimco Emerging Markets	Pair Corr
0.61	PFUUX	Pimco Foreign Bond	Pair Corr
0.62	PFUAX	Foreign Bond	Pair Corr
0.88	PGBIX	Global Bond Fund	Pair Corr

Moving against Emerging Mutual Fund

0.36

PFTCX

Short Term Fund

Pair Corr

Related Correlations Analysis

	FGWMX	FGVMX	FGYMX	SCRYY	MSTSX	VIASP	XTWO	SVII	70082LAB3	XTWY
FGWMX		1.0	1.0	0.05	0.39	-0.16	0.59	-0.27	-0.39	0.46	FGWMX
FGVMX	1.0		1.0	0.07	0.4	-0.15	0.59	-0.28	-0.38	0.46	FGVMX
FGYMX	1.0	1.0		0.01	0.35	-0.21	0.64	-0.3	-0.44	0.52	FGYMX
SCRYY	0.05	0.07	0.01		0.4	0.76	-0.21	-0.34	0.51	-0.38	SCRYY
MSTSX	0.39	0.4	0.35	0.4		0.08	-0.12	0.13	0.23	-0.36	MSTSX
VIASP	-0.16	-0.15	-0.21	0.76	0.08		-0.33	-0.14	0.71	-0.43	VIASP
XTWO	0.59	0.59	0.64	-0.21	-0.12	-0.33		-0.6	-0.7	0.91	XTWO
SVII	-0.27	-0.28	-0.3	-0.34	0.13	-0.14	-0.6		0.37	-0.49	SVII
70082LAB3	-0.39	-0.38	-0.44	0.51	0.23	0.71	-0.7	0.37		-0.75	70082LAB3
XTWY	0.46	0.46	0.52	-0.38	-0.36	-0.43	0.91	-0.49	-0.75		XTWY
	FGWMX	FGVMX	FGYMX	SCRYY	MSTSX	VIASP	XTWO	SVII	70082LAB3	XTWY

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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

FGVMX	+ 1.0	FGWMX
FGYMX	+ 1.0	FGWMX
FGYMX	+ 1.0	FGVMX
XTWY	+ 0.91	XTWO
VIASP	+ 0.76	SCRYY
70082LAB3	+ 0.71	VIASP

High negative correlations

XTWY	- 0.75	70082LAB3
70082LAB3	- 0.7	XTWO
SVII	- 0.6	XTWO
XTWY	- 0.49	SVII
70082LAB3	- 0.44	FGYMX
XTWY	- 0.43	VIASP

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
FGWMX	0.23	0.02	(0.32)	0.83	0.21	(0.27)	0.47	(0.39)	1.65
FGVMX	0.22	0.02	(0.32)	0.59	0.18	(0.27)	0.39	(0.47)	1.57
FGYMX	0.22	0.01	(0.33)	0.57	0.19	(0.27)	0.47	(0.39)	1.57
SCRYY	1.93	0.45	0.12	(0.71)	1.74	(2.85)	5.61	(3.52)	12.99
MSTSX	0.45	(0.01)	(0.11)	0.10	0.39	(0.59)	1.21	(0.84)	2.80
VIASP	0.75	0.10	(0.02)	(1.58)	1.11	(0.81)	2.28	(1.20)	7.18
XTWO	0.08	(0.01)	0.00	1.07	0.00	0.00	0.14	(0.12)	0.55
SVII	0.18	0.00	(0.17)	0.24	0.39	(0.29)	0.44	(0.53)	4.77
70082LAB3	0.70	0.09	(0.03)	(0.69)	0.99	(0.84)	1.75	(1.19)	6.86
XTWY	0.76	(0.10)	0.00	0.98	0.00	0.00	1.33	(1.70)	5.49

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