MSCI Country Momentum Index Correlations

In MSCI Country Index Correlations, we looked at country index correlations through time. Here is a quick update that “flattens” out the rolling correlation of the momentum versions of these indices with the MSCI INDIA MOMENTUM Index.

Three-year Rolling Correlations

MSCI Country Momentum Index 3-year Rolling Correlations

Five-year Rolling Correlations

MSCI Country Momentum Index 5-year Rolling Correlations


Momentum is a lose proxy for sentiment and the tides of optimism floats all boats. All equity markets are correlated with each other – some strongly (HONG KONG) and some weakly (CANADA.)

The median correlations across both 3- and 5-year rolling periods are greater than +0.70 between INDIA MOMENTUM and EMERGING MARKETS MOMENTUM.

Cumulative Returns of INDIA and EM MOMENTUM (MSCI)

No market is an island. Sentiment is tail that wags the dog.

Comments are closed, but trackbacks and pingbacks are open.