Please find below an update of the correlation matrix on emerging markets ETFs vs. Nasdaq and SP500 proxied by the ETF QQQQ and SPY.
Please find below an update of the correlation matrix on emerging markets ETFs vs. Nasdaq and SP500 proxied by the ETF QQQQ and SPY.
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Interesting…I imagined investors playing the risk trade vs. risk averse would reflect in negative correlations b/w US and ASIA. Although I haven’t rev’d all your correlations, do you have any thoughts?
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It seems correlation between most markets are increasing, hence making diversification based on allocation to different markets less effective.
It may however be more meaning full to calculate the conditional correlations before concluding.