A financial management company manages a diversified portfolio consisting of USD 37 million in US stocks and USD 48 million in emerging market stocks. The portfolio is assessed using a 1-day 95% Value at Risk (VaR) metric, which reveals that both the US and emerging market stocks have an individual VaR of USD 1.3 million. Historically, the returns of the US stocks and emerging market stocks have shown a correlation of 0.25.

In the context of routine portfolio rebalancing, the portfolio manager decides to reallocate the funds by selling USD 7 million of US stocks and using the proceeds to invest in USD 7 million of emerging market stocks. Meanwhile, the Chief Risk Officer advises transitioning from a 1-day 95% VaR to a more conservative 10-day 99% VaR risk metric.

Assuming a normal distribution of returns and that the rebalancing will not affect the volatility of the individual stock investments, determine the increase in the portfolio VaR due to both the rebalancing and the change in the risk measurement approach.