Vanguard Small Correlations

Etfs . USA . 
Etf . Vanguard Small Cap Index
VB Etf  USD 230.38  0.62  0.27%   
The current 90-days correlation between Vanguard Small Cap and Vanguard Mid Cap Index is 0.97 (i.e., Almost no diversification). The correlation of Vanguard Small is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Vanguard Small Correlation With Market

Poor diversification

The correlation between Vanguard Small Cap Index and DJI is 0.75 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Small Cap Index and DJI in the same portfolio, assuming nothing else is changed.
  
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Vanguard Small Cap Index. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.

Moving together with Vanguard Etf

  0.94IJR iShares Core SPPairCorr
  0.99IWM iShares Russell 2000 Aggressive PushPairCorr
  0.99VRTIX Vanguard Russell 2000PairCorr
  0.94VTWO Vanguard Russell 2000PairCorr
  0.95FNDA Schwab Fundamental SmallPairCorr
  0.99SPSM SPDR Portfolio SPPairCorr
  0.96DFAS Dimensional Small CapPairCorr
  0.99VIOO Vanguard SP SmallPairCorr
  0.99PRFZ Invesco FTSE RAFIPairCorr
  0.96VTI Vanguard Total StockPairCorr
  0.94SPY SPDR SP 500 Aggressive PushPairCorr
  0.94IVV iShares Core SPPairCorr
  0.95VUG Vanguard Growth IndexPairCorr
  0.92VO Vanguard Mid CapPairCorr
  0.65JPM JPMorgan ChasePairCorr
  0.67WMT WalmartPairCorr
  0.79MSFT Microsoft Aggressive PushPairCorr
  0.7BA BoeingPairCorr
  0.78CAT CaterpillarPairCorr
  0.91BAC Bank of America Aggressive PushPairCorr
  0.92HD Home DepotPairCorr
  0.78DIS Walt DisneyPairCorr

Moving against Vanguard Etf

  0.65BND Vanguard Total BondPairCorr
  0.48VEA Vanguard FTSE DevelopedPairCorr
  0.45GDXU MicroSectors Gold MinersPairCorr
  0.73VZ Verizon CommunicationsPairCorr
  0.7TRV The Travelers CompaniesPairCorr
  0.66JNJ Johnson Johnson Sell-off TrendPairCorr
  0.57T ATT Inc Sell-off TrendPairCorr
  0.41PG Procter GamblePairCorr
  0.37XOM Exxon Mobil Corp Earnings Call This WeekPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
VV
+ 0.95
VO
VBR
+ 0.94
VO
VV
+ 0.94
VBR
VBK
+ 0.94
VBR
VBK
+ 0.91
VV
VBK
+ 0.85
VO
  
High negative correlations   
VBK
- 0.41
VWO
VWO
- 0.41
VBR
VV
- 0.24
VWO
VWO
- 0.19
VO

Vanguard Small Constituents Risk-Adjusted Indicators

There is a big difference between Vanguard Etf performing well and Vanguard Small ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Vanguard Small's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

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