FYI: Over the last 24 months, the average correlation between single-country equity markets has dropped significantly. These dropping country correlations are also clearly visible at the regional level. As seen in the chart below, rolling one-year correlations between the S&P500, EuroStoxx 600, Nikkei 225 and MSCI Emerging Markets Index are making new post-2000 lows.
Regards,
Ted
http://www.etf.com/sections/etf-strategist-corner/calhoun?nopaging=1
