Vanguard Consumer Correlations

VDC Etf

USD 211.60 2.87 1.34%

The current 90-days correlation between Vanguard Consumer Staples and Vanguard Consumer Discretionary is 0.33 (i.e., Weak diversification). The correlation of Vanguard Consumer 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 Consumer Correlation With Market

Very weak diversification

The correlation between Vanguard Consumer Staples and DJI is 0.46 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Consumer Staples 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 Consumer Staples. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in unemployment.

Moving together with Vanguard Etf

0.95	XLP	Consumer Staples Select	Pair Corr
0.73	IYK	iShares Consumer Staples	Pair Corr
0.88	KXI	iShares Global Consumer	Pair Corr
1.0	FSTA	Fidelity MSCI Consumer	Pair Corr
0.64	PSL	Invesco DWA Consumer	Pair Corr
0.77	CSCO	Cisco Systems	Pair Corr
0.78	IBM	International Business	Pair Corr
0.73	PG	Procter Gamble	Pair Corr
0.69	JNJ	Johnson Johnson	Pair Corr
0.73	KO	Coca Cola Sell-off Trend	Pair Corr

Moving against Vanguard Etf

0.4	USD	ProShares Ultra Semi	Pair Corr
0.35	NAIL	Direxion Daily Homeb	Pair Corr
0.31	GBTC	Grayscale Bitcoin Trust	Pair Corr
0.69	MRK	Merck Company	Pair Corr
0.48	AA	Alcoa Corp	Pair Corr

Related Correlations Analysis

	VCR	VPU	VIS	VAW	VHT
VCR		-0.25	0.79	0.39	-0.25	VCR
VPU	-0.25		0.25	0.63	0.71	VPU
VIS	0.79	0.25		0.78	0.2	VIS
VAW	0.39	0.63	0.78		0.65	VAW
VHT	-0.25	0.71	0.2	0.65		VHT
	VCR	VPU	VIS	VAW	VHT

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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

VIS	+ 0.79	VCR
VAW	+ 0.78	VIS
VHT	+ 0.71	VPU
VHT	+ 0.65	VAW
VAW	+ 0.63	VPU
VAW	+ 0.39	VCR

High negative correlations

VHT	- 0.25	VCR
VPU	- 0.25	VCR

Vanguard Consumer Constituents Risk-Adjusted Indicators

There is a big difference between Vanguard Etf performing well and Vanguard Consumer 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 Consumer'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.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
VCR	1.16	(0.24)	0.00	(0.18)	0.00	0.00	2.19	(2.75)	6.32
VPU	0.83	0.01	0.01	0.04	1.14	(0.81)	1.75	(2.06)	4.48
VIS	0.84	(0.05)	0.00	(0.05)	0.00	0.00	1.50	(1.80)	4.71
VAW	0.82	(0.04)	0.00	(0.05)	0.00	0.00	1.60	(1.93)	5.11
VHT	0.67	0.04	0.05	0.07	0.70	(0.72)	1.23	(1.21)	3.22

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