Vanguard Momentum Correlations

Etfs . USA . 
Etf . Vanguard Momentum Factor
VFMO Etf  USD 159.66  0.05  0.03%   
The current 90-days correlation between Vanguard Momentum Factor and Vanguard Quality Factor is 0.87 (i.e., Very poor diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Vanguard Momentum moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Vanguard Momentum Factor moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

Vanguard Momentum Correlation With Market

Poor diversification

The correlation between Vanguard Momentum Factor and DJI is 0.71 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Momentum Factor 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 Momentum Factor. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in population.

Moving together with Vanguard Etf

  0.95VO Vanguard Mid CapPairCorr
  0.98VXF Vanguard Extended MarketPairCorr
  0.96IJH iShares Core SPPairCorr
  0.98IWR iShares Russell Mid Sell-off TrendPairCorr
  0.96MDY SPDR SP MIDCAPPairCorr
  0.99FV First Trust DorseyPairCorr
  0.96IVOO Vanguard SP MidPairCorr
  0.97JHMM John Hancock MultifactorPairCorr
  0.93BBMC JPMorgan BetaBuilders MidPairCorr
  0.96XMMO Invesco SP MidCapPairCorr
  0.79WGMI Valkyrie Bitcoin MinersPairCorr
  0.8BA BoeingPairCorr
  0.68MSFT Microsoft Aggressive PushPairCorr
  0.79HPQ HP IncPairCorr
  0.89HD Home DepotPairCorr
  0.76DIS Walt DisneyPairCorr
  0.92BAC Bank of America Aggressive PushPairCorr
  0.65CAT CaterpillarPairCorr
  0.77WMT WalmartPairCorr
  0.65AA Alcoa CorpPairCorr
  0.76JPM JPMorgan ChasePairCorr

Moving against Vanguard Etf

  0.59PMBS PIMCO Mortgage BackedPairCorr
  0.54FXY Invesco CurrencySharesPairCorr
  0.48AMPD Tidal Trust IIPairCorr
  0.65TRV The Travelers CompaniesPairCorr
  0.54JNJ Johnson JohnsonPairCorr
  0.51KO Coca Cola Sell-off TrendPairCorr
  0.44MCD McDonaldsPairCorr
  0.43T ATT Inc Aggressive PushPairCorr

Related Correlations Analysis

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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   
VFVA
+ 0.95
VFQY
VIOG
+ 0.95
VFQY
VFMF
+ 0.94
VFQY
VIOG
+ 0.91
VFVA
VFVA
+ 0.88
VFMF
VIOG
+ 0.86
VFMF
  
High negative correlations   
VIOG
- 0.2
VFMV

Vanguard Momentum Constituents Risk-Adjusted Indicators

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

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