Market Measures

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China and EEM

Market Measures

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In this Market Measure Tom and Tony take a look at the ETFs that cover the emerging markets (EEM) and China (FXI).

The emerging markets are highly correlated to China since it makes up roughly ⅓ of the index. But, how do they compare in risk when looking historically at selling premium in both?

The Study The Results

Based on Average P/L, win ratio, average loss and maximum loss, FXI historically experienced greater losses and a lower P/L in comparison to EEM. Additionally, when higher IV Rank was taken into account, both underlyings experienced a boost in average P/L and win ratio.

For further detail and the valuable takeaways on FXI and EEM, tune into the segment.

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