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NRby u/nikhil_r·10hQuestion

On EM equity correlation: Is it just me, or are correlations tighter now?

Hey everyone, been trying to get my head around current EM equity dynamics. Historically, I've always thought of EM as a bit of a mosaic, with individual country narratives driving a lot of the price action, meaning some decent diversification even within the EM basket. But lately, it feels like everything's moving much more in lockstep, especially when a big risk-off event hits globally. Is this just confirmation bias on my part, or are others seeing a much tighter correlation across, say, $KWEB, $EEM, and even some of the Latin American ETFs like $EWZ? It's making me rethink position sizing if the diversification benefit within EM isn't what it used to be.

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NPu/nelson_priya·9h

I've noticed a similar trend. It's difficult to say if it's a structural shift or just the current macro environment forcing everything into the same basket. Are you observing this across all sectors within EM, or more pronounced in certain areas like tech?

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