The Big Theme 

Thematic investing can improve portfolio diversity

Thematic investing can improve portfolio diversity

Correlations between the US, UK, Europe, Japan, Asia Pacific and emerging market equity markets have been relatively low over the past two years. However, in times of extreme stress the world's major equity markets can all fall together. For example, a correlation of 1 means markets rise and fall perfectly in tandem, and between 2007 and 2010 the correlations between major equity markets, with the exception of Japan, ranged between 0.77 and 0.99.

To continue reading, register today

to enjoy limited access to the following:

  • Daily trading news
  • Funds coverage
  • Features on big investment themes
  • Comprehensive companies coverage
  • Economic analysis
Register
Subscribe to Investors Chronicle

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now