simon cassidy

International ETFs: Correlations with Broad U.S. Market

I hadn't realized how big the difference between correlations for returns and prices are. Thanks for directing me to the other article. However, the figures still seem off. When I ran a one year correlation for IWV and EFA using daily returns, the figure was .80. When using prices, it was .94. Both of these are a long way from the .09 IShares claims on their calculator. I'd guess that EPP, EEM, FXI, etc. are also off. These figures would drastically overstate how easy it is to develop a diversified portfolio.