Vanguard Equity Correlations

VEIPX Fund

USD 43.09 0.20 0.46%

The current 90-days correlation between Vanguard Equity Income and Vanguard Dividend Growth is 0.7 (i.e., Poor diversification). The correlation of Vanguard Equity 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 Equity Correlation With Market

Very weak diversification

The correlation between Vanguard Equity Income and DJI is 0.42 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Equity Income 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 Equity Income. 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 american community survey.

Moving together with Vanguard Mutual Fund

0.84	VMIAX	Vanguard Materials Index	Pair Corr
0.68	VMVAX	Vanguard Mid Cap	Pair Corr
0.75	VMVIX	Vanguard Mid Cap	Pair Corr
0.81	VMVLX	Vanguard Mega Cap	Pair Corr
0.88	VPCCX	Vanguard Primecap	Pair Corr
0.9	VPMCX	Vanguard Primecap	Pair Corr
0.78	VPMAX	Vanguard Primecap	Pair Corr
0.76	VRTPX	Vanguard Reit Ii	Pair Corr
0.92	VAGVX	Vanguard Advice Select	Pair Corr
0.67	VAIGX	Vanguard Advice Select	Pair Corr

Related Correlations Analysis

	VDIGX	VWINX	VWELX	VQNPX	VASVX
VDIGX		0.54	0.31	0.4	0.45	VDIGX
VWINX	0.54		-0.3	-0.11	-0.02	VWINX
VWELX	0.31	-0.3		0.7	0.56	VWELX
VQNPX	0.4	-0.11	0.7		0.79	VQNPX
VASVX	0.45	-0.02	0.56	0.79		VASVX
	VDIGX	VWINX	VWELX	VQNPX	VASVX

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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

VASVX	+ 0.79	VQNPX
VQNPX	+ 0.7	VWELX
VASVX	+ 0.56	VWELX
VWINX	+ 0.54	VDIGX
VASVX	+ 0.45	VDIGX
VQNPX	+ 0.4	VDIGX

High negative correlations

VWELX	- 0.3	VWINX
VQNPX	- 0.11	VWINX
VASVX	- 0.02	VWINX

Risk-Adjusted Indicators

There is a big difference between Vanguard Mutual Fund performing well and Vanguard Equity 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 Equity'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
VDIGX	0.61	(0.01)	0.00	(0.06)	0.00	0.00	0.95	(1.44)	3.57
VWINX	0.29	0.01	0.11	(0.12)	0.38	(0.32)	0.64	(0.63)	1.73
VWELX	0.69	(0.14)	0.00	(0.22)	0.00	0.00	0.93	(1.38)	9.09
VQNPX	1.04	(0.27)	0.00	0.59	0.00	0.00	1.26	(2.09)	13.03
VASVX	0.93	(0.20)	0.00	(0.28)	0.00	0.00	1.40	(1.75)	14.06

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