World Market Correlation Summary

A global investor can reduce overall portfolio risk simply by holding instruments in multiple markets. The correlations of major world markets vary considerably through time and are highest during periods of economic integration and collaboration. In other words, investors can reduce their exposure to country risk by holding a diversified portfolio of global assets.
 

DOW: US
NYSE: US
Nasdaq: US
SP 500: US
NASDAQ UK: UK
DAX: DE
Shanghai: CN
Hang Seng: HK
BSE: IN
IPC: MX
CAC 40: FR
Bovespa: BR
Seoul Comp: KR
Taiwan Wtd: TW
SPTSX Comp: CA
MerVal: AR
NZSE: NZ
ATX: AT
OSE All: NO
Bursa Malaysia: MI
Madrid Gnrl: ES
Stockholm: SE
Swiss Mrt: CH
Israel Index: IL
Jakarta Comp: ID
Straits Tms: SG
All Ords: AU
ISEQ: IE
NIKKEI 225: JP
Russia TR: RU
IBEX 35: ES
NASDAQ Italy: IT
Greece TR: GR
OMX COPENHAGEN: DK
EURONEXT BEL-20: BE
AEX Amsterdam: NL
Russell 2000 : US
OMXVGI: LT
NQFI: FI
NQEGT: EG
NQTH: TH
OMXRGI: LV
NQPH: PH
XU100: TR
DOW: US
0.950.930.990.940.78-0.290.210.920.910.920.890.850.860.960.590.910.680.650.850.550.930.910.940.310.910.90.750.59-0.490.530.880.910.910.920.90.970.170.90.740.930.030.9-0.3
DJI
NYSE: US
0.950.90.950.960.81-0.230.310.910.930.920.940.860.910.960.660.90.740.730.830.610.940.90.920.290.90.920.730.7-0.490.520.870.890.890.90.90.950.260.90.730.960.090.92-0.3
NYA
Nasdaq: US
0.930.90.970.880.68-0.120.330.920.910.840.870.750.860.890.510.860.580.530.740.670.880.820.910.210.890.790.60.62-0.590.370.810.80.840.860.80.96-0.030.850.730.920.230.84-0.46
IXIC
SP 500: US
0.990.950.970.940.76-0.220.270.940.940.910.910.830.890.960.570.90.650.620.820.620.940.890.950.250.920.880.710.63-0.540.480.880.880.90.920.880.990.110.90.760.950.120.9-0.37
GSPC
NASDAQ UK: UK
0.940.960.880.940.83-0.230.250.920.940.930.940.870.90.960.650.860.780.760.820.60.960.890.930.210.870.910.770.65-0.490.640.920.910.910.90.920.940.310.940.70.950.080.91-0.24
NQGB
DAX: DE
0.780.810.680.760.83-0.31-0.050.730.770.930.810.880.770.850.570.640.890.750.740.370.870.720.710.10.670.780.840.68-0.110.740.890.760.720.720.880.780.450.860.640.81-0.090.84-0.14
GDAXI
Shanghai: CN
-0.29-0.23-0.12-0.22-0.23-0.310.62-0.18-0.24-0.35-0.16-0.56-0.25-0.28-0.2-0.44-0.35-0.22-0.660.4-0.28-0.52-0.27-0.28-0.4-0.53-0.620.13-0.49-0.25-0.34-0.46-0.29-0.47-0.5-0.15-0.35-0.24-0.57-0.260.81-0.450.15
000001
Hang Seng: HK
0.210.310.330.270.25-0.050.620.30.230.060.31-0.140.290.210.260.21-0.040.22-0.120.680.150.050.250.150.190.05-0.310.46-0.72-0.150.020.10.220.08-0.020.31-0.170.18-0.130.250.720.07-0.02
HSI
BSE: IN
0.920.910.920.940.920.73-0.180.30.960.880.920.80.860.910.630.850.650.630.770.660.930.840.940.150.890.840.690.65-0.550.530.860.860.880.870.840.930.120.90.720.950.190.87-0.39
BSESN
IPC: MX
0.910.930.910.940.940.77-0.240.230.960.890.950.850.90.950.650.870.690.670.830.650.960.870.950.120.910.880.730.61-0.50.550.90.870.880.910.890.920.220.920.780.980.140.93-0.4
MXX
CAC 40: FR
0.920.920.840.910.930.93-0.350.060.880.890.880.920.830.930.590.820.820.70.850.470.960.870.890.180.830.890.850.65-0.310.660.930.880.880.890.960.910.30.920.740.92-0.040.91-0.28
FCHI
Bovespa: BR
0.890.940.870.910.940.81-0.160.310.920.950.880.840.930.960.70.840.750.770.790.670.950.840.90.160.860.880.720.69-0.480.590.890.860.830.850.880.910.350.920.720.950.210.92-0.27
BVSP
Seoul Comp: KR
0.850.860.750.830.870.88-0.56-0.140.80.850.920.840.830.90.590.830.80.70.940.290.910.90.820.20.840.930.930.51-0.110.680.910.870.80.870.950.810.430.850.830.87-0.250.94-0.28
KS11
Taiwan Wtd: TW
0.860.910.860.890.90.77-0.250.290.860.90.830.930.830.920.650.860.750.750.810.620.890.830.860.340.890.870.670.69-0.380.440.820.840.790.840.850.890.310.860.780.910.120.92-0.3
TWII
SPTSX Comp: CA
0.960.960.890.960.960.85-0.280.210.910.950.930.960.90.920.670.890.770.730.860.590.970.90.920.230.90.920.790.64-0.420.60.920.90.890.910.940.960.330.930.770.960.060.94-0.27
GSPTSE
MerVal: AR
0.590.660.510.570.650.57-0.20.260.630.650.590.70.590.650.670.570.680.830.580.470.630.570.580.410.60.640.520.54-0.170.520.580.70.660.510.580.60.470.640.410.680.020.650.12
MERV
NZSE: NZ
0.910.90.860.90.860.64-0.440.210.850.870.820.840.830.860.890.570.580.580.890.450.860.950.890.390.960.940.710.51-0.40.390.780.870.870.930.860.870.20.790.840.89-0.050.89-0.43
NZ50
ATX: AT
0.680.740.580.650.780.89-0.35-0.040.650.690.820.750.80.750.770.680.580.820.680.360.750.640.610.260.610.750.780.650.020.710.780.750.680.620.790.70.560.790.570.75-0.20.780.01
ATX
OSE All: NO
0.650.730.530.620.760.75-0.220.220.630.670.70.770.70.750.730.830.580.820.610.460.70.620.620.360.580.710.650.65-0.160.680.710.760.650.560.690.650.540.750.40.720.00.720.12
OSEAX
Bursa Malaysia: MI
0.850.830.740.820.820.74-0.66-0.120.770.830.850.790.940.810.860.580.890.680.610.210.850.950.820.310.90.950.860.38-0.140.520.840.870.810.920.920.770.370.780.890.84-0.330.92-0.34
KLSE
Madrid Gnrl: ES
0.550.610.670.620.60.370.40.680.660.650.470.670.290.620.590.470.450.360.460.210.580.360.630.070.50.360.130.66-0.660.220.450.470.580.440.40.670.00.620.210.610.660.44-0.08
SMSI
Stockholm: SE
0.930.940.880.940.960.87-0.280.150.930.960.960.950.910.890.970.630.860.750.70.850.580.890.940.130.880.910.820.62-0.440.650.950.90.90.920.950.930.310.960.760.960.090.93-0.31
OMXSPI
Swiss Mrt: CH
0.910.90.820.890.890.72-0.520.050.840.870.870.840.90.830.90.570.950.640.620.950.360.890.90.290.930.970.810.43-0.330.510.850.910.870.960.930.860.30.820.830.88-0.170.92-0.35
SSMI
Israel Index: IL
0.940.920.910.950.930.71-0.270.250.940.950.890.90.820.860.920.580.890.610.620.820.630.940.90.210.90.880.720.54-0.560.520.880.910.910.940.890.930.150.920.730.940.140.88-0.34
NQIL
Jakarta Comp: ID
0.310.290.210.250.210.1-0.280.150.150.120.180.160.20.340.230.410.390.260.360.310.070.130.290.210.350.330.160.180.08-0.040.070.420.350.230.190.240.210.150.190.21-0.220.210.3
JKSE
Straits Tms: SG
0.910.90.890.920.870.67-0.40.190.890.910.830.860.840.890.90.60.960.610.580.90.50.880.930.90.350.920.680.56-0.380.380.80.860.890.930.860.880.190.810.880.91-0.050.91-0.42
STI
All Ords: AU
0.90.920.790.880.910.78-0.530.050.840.880.890.880.930.870.920.640.940.750.710.950.360.910.970.880.330.920.840.52-0.270.560.860.920.880.930.940.850.40.850.830.91-0.190.94-0.3
AORD
ISEQ: IE
0.750.730.60.710.770.84-0.62-0.310.690.730.850.720.930.670.790.520.710.780.650.860.130.820.810.720.160.680.840.370.010.790.880.820.70.770.890.690.420.80.720.76-0.350.84-0.21
ISEQ
NIKKEI 225: JP
0.590.70.620.630.650.680.130.460.650.610.650.690.510.690.640.540.510.650.650.380.660.620.430.540.180.560.520.37-0.310.370.550.50.580.440.530.680.170.640.380.670.310.58-0.19
N225
Russia TR: RU
-0.49-0.49-0.59-0.54-0.49-0.11-0.49-0.72-0.55-0.5-0.31-0.48-0.11-0.38-0.42-0.17-0.40.02-0.16-0.14-0.66-0.44-0.33-0.560.08-0.38-0.270.01-0.31-0.03-0.32-0.32-0.43-0.41-0.25-0.550.33-0.42-0.1-0.47-0.7-0.280.31
NQRUT
IBEX 35: ES
0.530.520.370.480.640.74-0.25-0.150.530.550.660.590.680.440.60.520.390.710.680.520.220.650.510.52-0.040.380.560.790.37-0.030.760.620.550.460.660.50.520.70.310.57-0.150.570.11
IBEX
NASDAQ Italy: IT
0.880.870.810.880.920.89-0.340.020.860.90.930.890.910.820.920.580.780.780.710.840.450.950.850.880.070.80.860.880.55-0.320.760.870.830.850.920.870.30.960.730.91-0.040.91-0.27
NQIT
Greece TR: GR
0.910.890.80.880.910.76-0.460.10.860.870.880.860.870.840.90.70.870.750.760.870.470.90.910.910.420.860.920.820.5-0.320.620.870.910.90.910.860.370.90.690.89-0.10.88-0.11
NQGRT
OMX COPENHAGEN: DK
0.910.890.840.90.910.72-0.290.220.880.880.880.830.80.790.890.660.870.680.650.810.580.90.870.910.350.890.880.70.58-0.430.550.830.910.890.870.890.290.880.670.890.010.82-0.18
OMXCGI
EURONEXT BEL-20: BE
0.920.90.860.920.90.72-0.470.080.870.910.890.850.870.840.910.510.930.620.560.920.440.920.960.940.230.930.930.770.44-0.410.460.850.90.890.940.880.230.860.840.9-0.060.91-0.4
BFX
AEX Amsterdam: NL
0.90.90.80.880.920.88-0.5-0.020.840.890.960.880.950.850.940.580.860.790.690.920.40.950.930.890.190.860.940.890.53-0.250.660.920.910.870.940.870.420.910.80.9-0.140.93-0.27
AEX
Russell 2000 : US
0.970.950.960.990.940.78-0.150.310.930.920.910.910.810.890.960.60.870.70.650.770.670.930.860.930.240.880.850.690.68-0.550.50.870.860.890.880.870.110.910.710.950.180.88-0.33
RUT
OMXVGI: LT
0.170.26-0.030.110.310.45-0.35-0.170.120.220.30.350.430.310.330.470.20.560.540.370.00.310.30.150.210.190.40.420.170.330.520.30.370.290.230.420.110.270.20.21-0.310.320.48
OMXVGI
NQFI: FI
0.90.90.850.90.940.86-0.240.180.90.920.920.920.850.860.930.640.790.790.750.780.620.960.820.920.150.810.850.80.64-0.420.70.960.90.880.860.910.910.270.660.940.10.89-0.23
NQFI
NQEGT: EG
0.740.730.730.760.70.64-0.57-0.130.720.780.740.720.830.780.770.410.840.570.40.890.210.760.830.730.190.880.830.720.38-0.10.310.730.690.670.840.80.710.20.660.78-0.240.87-0.56
NQEGT
NQTH: TH
0.930.960.920.950.950.81-0.260.250.950.980.920.950.870.910.960.680.890.750.720.840.610.960.880.940.210.910.910.760.67-0.470.570.910.890.890.90.90.950.210.940.780.10.95-0.37
NQTH
OMXRGI: LV
0.030.090.230.120.08-0.090.810.720.190.14-0.040.21-0.250.120.060.02-0.05-0.20.0-0.330.660.09-0.170.14-0.22-0.05-0.19-0.350.31-0.7-0.15-0.04-0.10.01-0.06-0.140.18-0.310.1-0.240.1-0.09-0.09
OMXRGI
NQPH: PH
0.90.920.840.90.910.84-0.450.070.870.930.910.920.940.920.940.650.890.780.720.920.440.930.920.880.210.910.940.840.58-0.280.570.910.880.820.910.930.880.320.890.870.95-0.09-0.38
NQPH
XU100: TR
-0.3-0.3-0.46-0.37-0.24-0.140.15-0.02-0.39-0.4-0.28-0.27-0.28-0.3-0.270.12-0.430.010.12-0.34-0.08-0.31-0.35-0.340.3-0.42-0.3-0.21-0.190.310.11-0.27-0.11-0.18-0.4-0.27-0.330.48-0.23-0.56-0.37-0.09-0.38
XU100
DOW: US
NYSE: US
Nasdaq: US
SP 500: US
NASDAQ UK: UK
DAX: DE
Shanghai: CN
Hang Seng: HK
BSE: IN
IPC: MX
CAC 40: FR
Bovespa: BR
Seoul Comp: KR
Taiwan Wtd: TW
SPTSX Comp: CA
MerVal: AR
NZSE: NZ
ATX: AT
OSE All: NO
Bursa Malaysia: MI
Madrid Gnrl: ES
Stockholm: SE
Swiss Mrt: CH
Israel Index: IL
Jakarta Comp: ID
Straits Tms: SG
All Ords: AU
ISEQ: IE
NIKKEI 225: JP
Russia TR: RU
IBEX 35: ES
NASDAQ Italy: IT
Greece TR: GR
OMX COPENHAGEN: DK
EURONEXT BEL-20: BE
AEX Amsterdam: NL
Russell 2000 : US
OMXVGI: LT
NQFI: FI
NQEGT: EG
NQTH: TH
OMXRGI: LV
NQPH: PH
XU100: TR

Correlation Matchups

The Correlation Coefficient is a useful tool to identify correlated or non-correlated securities, which is essential in developing a diversified portfolio. It tells us the relationship between two positions you have in your portfolio or considering acquiring. Over a given time period, the two securities movetogether 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   
GSPCDJI
RUTGSPC
NQTHMXX
RUTDJI
GSPCIXIC
OMXSPIGSPTSE
  
High negative correlations   
NQRUTHSI
OMXRGINQRUT
NQRUTSMSI
KLSE000001
ISEQ000001
NQRUTIXIC
Investors' overexposure to a single market brings diversification risk in a portfolio, leaving it vulnerable to losses in that economy and underexposes it to markets in other parts of the world. For the same reason, if you are currently managing a portfolio composed of equities from multiple global markets, you don't want your positions to be highly correlated, even at the expense of accepting lower expected returns. Generally speaking, low correlations across different markets is the main idea behind global portfolio diversification, and without it, there's no benefit to the rebalancing of internationally exposed portfolios. The correlation table belows shows 90 days (short-term) correlation pairs for indexes from 30 major world markets.