TLT / EEM
iShares 20+ Year Treasury Bond ETF and iShares MSCI Emerging Markets ETF correlation is 0.12 over 90 ETF session closes, ending 2026-10-23. In this window they barely share a move.
The 30-close correlation is -0.09 against 0.12 over 90 closes. The pair broke apart. Both names are ETFs. The window is exchange sessions only.
TLT 90-close vol is 10.6%. EEM is 25.8%. A 50/50 book of the two annualized vols would have realized about 14.5%, against 18.2% if you averaged the two vols with no diversification.
FAQ
0.12 over 90 ETF session closes, ending 2026-10-23. In this window they barely share a move.
The 30-close correlation is -0.09 against 0.12 over 90 closes. The pair broke apart.
Using the 90-close vols and this correlation, a 50/50 book would have realized about 14.5%. Compare that with holding either name alone.
This print uses ETF session closes and log-return correlation on the aligned window. A site that uses weekly returns, a different session calendar, or a longer sample will not match it. The method is on this page.
iShares 20+ Year Treasury Bond ETF volatility
90-close vol 10.6%.
iShares MSCI Emerging Markets ETF volatility
90-close vol 25.8%.
Correlation matrix
The full book, not just this pair.
Risk parity optimizer
Weights that stop the higher-vol name from owning the book.
Diversification ratio
How much of the standalone vol a mix actually cancels.
SPY and TLT
Another pair in the same universe.
SPY and EEM
Another pair in the same universe.
QQQ and TLT
Another pair in the same universe.
QQQ and EEM
Another pair in the same universe.
This page is the market path. Thrive is the book you actually held, so you can see whether the hedge was real.