Home Breadcrumb caret Economy Breadcrumb caret Economic Indicators Breadcrumb caret Investments Breadcrumb caret Market Insights Correlation high between Canada, emerging markets Because our economy is resource-rich, we share similarities with emerging markets. By Staff | August 17, 2015 | Last updated on August 17, 2015 1 min read Even though Canada is a developed market, its stocks often have a closer relationship with emerging market stocks, than with U.S., European or Asian stocks, says a new report from Provisus Wealth Management. Read: The search for uncorrelated assets That’s mainly because our economy is resource-rich, and driven by the success of resource-related sectors. However, says the report, “Canada is much less volatile and, normally, without the worries over political upheaval or accounting irregularities that [can] cause investors to shy away from other locales. [So] the true similarities are really much fewer than the differences.” Still, a chart included in the report shows that, over the last 13 years, the TSX/S&P Composite Index has been most closely correlated with the MCSI Emerging Market Index at 0.75—that compares to its 0.46 correlation with the S&P 500, and 0.60 correlation with the MSCI World Index, for example. Read more. Also read: Alternatives a solution to high correlations Consider active management to earn income How market volatility affects correlations Commodity prices shaky Staff The staff of Advisor.ca have been covering news for financial advisors since 1998. Save Stroke 1 Print Group 8 Share LI logo