Vanguard Financials Correlations

VFH Etf

USD 121.44 0.11 0.09%

The current 90-days correlation between Vanguard Financials Index and Vanguard Industrials Index is 0.78 (i.e., Poor diversification). The correlation of Vanguard Financials 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 Financials Correlation With Market

Poor diversification

The correlation between Vanguard Financials Index and DJI is 0.78 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Financials 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 Financials 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 census.

Moving together with Vanguard Etf

0.98	XLF	Financial Select Sector Aggressive Push	Pair Corr
0.86	KRE	SPDR SP Regional Aggressive Push	Pair Corr
0.9	KBE	SPDR SP Bank	Pair Corr
0.99	IYF	iShares Financials ETF	Pair Corr
1.0	FNCL	Fidelity MSCI Financials	Pair Corr
1.0	IYG	iShares Financial	Pair Corr
0.91	FXO	First Trust Financials	Pair Corr
0.76	IAT	iShares Regional Banks	Pair Corr
0.84	MPAY	Akros Monthly Payout	Pair Corr
0.91	CPST	Calamos ETF Trust	Pair Corr
0.73	AXP	American Express	Pair Corr
0.83	WMT	Walmart	Pair Corr
0.93	JPM	JPMorgan Chase	Pair Corr
0.63	GE	GE Aerospace	Pair Corr

Moving against Vanguard Etf

0.44	BITI	ProShares Trust	Pair Corr
0.56	MRK	Merck Company	Pair Corr

Related Correlations Analysis

	VIS	VCR	VAW	VHT	VDC
VIS		0.79	0.78	0.2	-0.01	VIS
VCR	0.79		0.39	-0.25	-0.17	VCR
VAW	0.78	0.39		0.65	0.46	VAW
VHT	0.2	-0.25	0.65		0.67	VHT
VDC	-0.01	-0.17	0.46	0.67		VDC
	VIS	VCR	VAW	VHT	VDC

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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

VCR	+ 0.79	VIS
VAW	+ 0.78	VIS
VDC	+ 0.67	VHT
VHT	+ 0.65	VAW
VDC	+ 0.46	VAW
VAW	+ 0.39	VCR

High negative correlations

VHT	- 0.25	VCR
VDC	- 0.17	VCR
VDC	- 0.01	VIS

Vanguard Financials Constituents Risk-Adjusted Indicators

There is a big difference between Vanguard Etf performing well and Vanguard Financials 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 Financials' 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
VIS	0.84	(0.05)	0.00	(0.05)	0.00	0.00	1.50	(1.80)	4.71
VCR	1.16	(0.24)	0.00	(0.18)	0.00	0.00	2.19	(2.75)	6.32
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
VDC	0.71	(0.06)	0.00	(0.12)	0.00	0.00	1.31	(1.57)	4.43

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