Vanguard California Correlations

VCADX Fund  USD 11.24  0.02  0.18%   
The current 90-days correlation between Vanguard California and Vanguard California Long Term is 0.96 (i.e., Almost no diversification). The correlation of Vanguard California 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. If the correlation is 0, the equities are not correlated; they are entirely random.

Vanguard California Correlation With Market

Average diversification

The correlation between Vanguard California Intermedia and DJI is 0.13 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard California Intermedia 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 California Intermediate Term. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in unemployment.

Moving together with Vanguard Mutual Fund

  0.88VMLUX Vanguard Limited TermPairCorr
  0.88VMLTX Vanguard Limited TermPairCorr
  0.66VMNVX Vanguard Global MinimumPairCorr
  0.76VMSIX Vanguard Multi SectorPairCorr
  0.66VMVFX Vanguard Global MinimumPairCorr
  0.92VNJUX Vanguard New JerseyPairCorr
  0.9VNJTX Vanguard New JerseyPairCorr
  0.87VNYTX Vanguard New YorkPairCorr
  0.87VNYUX Vanguard New YorkPairCorr
  0.95VOHIX Vanguard Ohio LongPairCorr
  0.95VPALX Vanguard PennsylvaniaPairCorr
  0.95VPAIX Vanguard PennsylvaniaPairCorr
  0.78VRTPX Vanguard Reit IiPairCorr
  0.63VAIGX Vanguard Advice SelectPairCorr
  0.69VAIPX Vanguard Inflation-protecPairCorr
  0.65VSCSX Vanguard Short TermPairCorr

Moving against Vanguard Mutual Fund

  0.35VMNFX Vanguard Market NeutralPairCorr
  0.34VMNIX Vanguard Market NeutralPairCorr
  0.32NAESX Vanguard Small CapPairCorr
  0.32VSCIX Vanguard Small CapPairCorr
  0.34VSGAX Vanguard Small Cap Potential GrowthPairCorr
  0.34VSGIX Vanguard Small Cap Potential GrowthPairCorr
  0.32VSCPX Vanguard Small CapPairCorr
  0.32VSMAX Vanguard Small CapPairCorr
  0.31VSEQX Vanguard Strategic EquityPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between Vanguard Mutual Fund performing well and Vanguard California Mutual Fund 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 California'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.