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.

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