Vanguard Utilities Correlations

VPU Etf

USD 166.73 3.80 2.23%

The current 90-days correlation between Vanguard Utilities Index and Vanguard Industrials Index is 0.58 (i.e., Very weak 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

Weak diversification

The correlation between Vanguard Utilities Index and DJI is 0.3 (i.e., Weak 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
0.87	FUTY	Fidelity MSCI Utilities	Pair Corr
0.87	IDU	iShares Utilities ETF	Pair Corr
0.89	FXU	First Trust Utilities	Pair Corr
0.88	JXI	iShares Global Utilities	Pair Corr
0.64	DIG	ProShares Ultra Oil	Pair Corr
0.72	GDXU	MicroSectors Gold Miners	Pair Corr
0.78	MMM	3M Company	Pair Corr
0.64	JNJ	Johnson Johnson	Pair Corr
0.72	IBM	International Business	Pair Corr
0.83	GE	GE Aerospace	Pair Corr
0.73	INTC	Intel Sell-off Trend	Pair Corr
0.72	CVX	Chevron Corp	Pair Corr

Moving against Vanguard Etf

0.45	RNRG	Global X Renewable	Pair Corr
0.45	YLCO	Global X YieldCo	Pair Corr
0.34	NAIL	Direxion Daily Homeb	Pair Corr
0.69	MRK	Merck Company	Pair Corr
0.46	MSFT	Microsoft Aggressive Push	Pair Corr

Related Correlations Analysis

	VDC	VAW	VOX	VFH	VIS
VDC		0.46	0.4	0.46	0.0	VDC
VAW	0.46		0.76	0.89	0.78	VAW
VOX	0.4	0.76		0.87	0.78	VOX
VFH	0.46	0.89	0.87		0.79	VFH
VIS	0.0	0.78	0.78	0.79		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

VFH	+ 0.89	VAW
VFH	+ 0.87	VOX
VIS	+ 0.79	VFH
VIS	+ 0.78	VAW
VIS	+ 0.78	VOX
VOX	+ 0.76	VAW

High negative correlations

VIS

- 0.0

VDC

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	0.69	(0.03)	0.00	(0.09)	0.00	0.00	1.31	(1.57)	4.43
VAW	0.83	(0.02)	0.00	(0.06)	0.00	0.00	1.60	(1.93)	5.11
VOX	0.93	(0.04)	0.00	(0.09)	0.00	0.00	1.73	(1.91)	5.58
VFH	0.85	0.03	0.02	0.00	1.32	(0.81)	1.94	(2.52)	6.15
VIS	0.85	(0.03)	0.00	(0.07)	0.00	0.00	1.50	(1.80)	4.71

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