Vanguard Utilities Correlations

VPU Etf

USD 171.95 0.64 0.37%

The current 90-days correlation between Vanguard Utilities Index and Vanguard Industrials Index is 0.62 (i.e., Poor diversification). The correlation of Vanguard Utilities 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 Utilities Correlation With Market

Modest diversification

The correlation between Vanguard Utilities Index and DJI is 0.26 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Utilities 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 Utilities 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 american community survey.

Moving together with Vanguard Etf

1.0	XLU	Utilities Select Sector	Pair Corr
1.0	FUTY	Fidelity MSCI Utilities	Pair Corr
1.0	IDU	iShares Utilities ETF	Pair Corr
0.97	FXU	First Trust Utilities	Pair Corr
0.89	JXI	iShares Global Utilities	Pair Corr
0.78	XOM	Exxon Mobil Corp	Pair Corr
0.69	TRV	The Travelers Companies	Pair Corr
0.73	JNJ	Johnson Johnson	Pair Corr
0.77	INTC	Intel Downward Rally	Pair Corr
0.69	DD	Dupont De Nemours	Pair Corr

Moving against Vanguard Etf

0.55	YCS	ProShares UltraShort Yen	Pair Corr
0.41	FNGO	MicroSectors FANG Index	Pair Corr
0.37	FNGU	MicroSectors FANG Index	Pair Corr
0.41	BA	Boeing	Pair Corr

Related Correlations Analysis

	VDC	VAW	VOX	VFH	VIS
VDC		0.56	0.39	0.5	0.35	VDC
VAW	0.56		-0.04	0.64	0.93	VAW
VOX	0.39	-0.04		0.63	-0.02	VOX
VFH	0.5	0.64	0.63		0.65	VFH
VIS	0.35	0.93	-0.02	0.65		VIS
	VDC	VAW	VOX	VFH	VIS

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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	+ 0.93	VAW
VIS	+ 0.65	VFH
VFH	+ 0.64	VAW
VFH	+ 0.63	VOX
VAW	+ 0.56	VDC
VFH	+ 0.5	VDC

High negative correlations

VOX	- 0.04	VAW
VIS	- 0.02	VOX

Vanguard Utilities Constituents Risk-Adjusted Indicators

There is a big difference between Vanguard Etf performing well and Vanguard Utilities 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 Utilities' 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
VDC	0.56	0.07	0.08	2.25	0.66	(0.56)	1.08	(1.15)	3.97
VAW	0.71	(0.07)	0.00	(0.10)	0.00	0.00	1.34	(1.28)	4.56
VOX	0.76	0.08	0.07	0.18	0.99	(0.75)	1.32	(1.51)	4.74
VFH	0.67	0.00	0.00	0.01	1.00	(0.65)	1.27	(1.49)	4.63
VIS	0.67	(0.07)	0.00	(0.10)	0.00	0.00	1.25	(1.14)	4.71

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