Vanguard Energy Correlations

VENAX Fund

USD 64.95 0.77 1.20%

The current 90-days correlation between Vanguard Energy Index and Vanguard Financials Index is 0.43 (i.e., Very weak diversification). The correlation of Vanguard Energy 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 Energy Correlation With Market

Very weak diversification

The correlation between Vanguard Energy Index and DJI is 0.4 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Energy 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 Energy Index. 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 nation.

Moving against Vanguard Mutual Fund

0.48	VTINX	Vanguard Target Reti	Pair Corr
0.37	VSCGX	Vanguard Lifestrategy	Pair Corr
0.34	VFITX	Vanguard Intermediate-ter	Pair Corr

Related Correlations Analysis

	VFAIX	VUIAX	VMIAX	VCSAX	VGELX
VFAIX		0.45	0.89	0.55	-0.13	VFAIX
VUIAX	0.45		0.56	0.61	0.44	VUIAX
VMIAX	0.89	0.56		0.52	0.04	VMIAX
VCSAX	0.55	0.61	0.52		0.14	VCSAX
VGELX	-0.13	0.44	0.04	0.14		VGELX
	VFAIX	VUIAX	VMIAX	VCSAX	VGELX

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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

VMIAX	+ 0.89	VFAIX
VCSAX	+ 0.61	VUIAX
VMIAX	+ 0.56	VUIAX
VCSAX	+ 0.55	VFAIX
VCSAX	+ 0.52	VMIAX
VUIAX	+ 0.45	VFAIX

High negative correlations

VGELX

- 0.13

VFAIX

Risk-Adjusted Indicators

There is a big difference between Vanguard Mutual Fund performing well and Vanguard Energy 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 Energy'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
VFAIX	0.86	0.04	0.03	0.00	1.31	(0.84)	1.99	(2.51)	6.10
VUIAX	0.79	0.06	0.08	0.15	0.94	(0.87)	1.78	(1.98)	4.76
VMIAX	0.83	(0.02)	0.00	(0.06)	0.00	0.00	1.65	(1.95)	5.09
VCSAX	0.67	0.00	0.03	(0.15)	0.96	(0.60)	1.33	(1.41)	4.59
VGELX	0.84	(0.03)	0.00	(0.86)	0.00	0.00	1.25	(1.23)	10.08

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