Vanguard Target Correlations

VTINX Fund

USD 13.34 0.01 0.07%

The current 90-days correlation between Vanguard Target Reti and T Rowe Price is 0.74 (i.e., Poor diversification). The correlation of Vanguard Target 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 Target Correlation With Market

Good diversification

The correlation between Vanguard Target Retirement and DJI is -0.13 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Target Retirement 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 Target Retirement. 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 board of governors.

Moving together with VANGUARD Mutual Fund

0.72	VMNVX	Vanguard Global Minimum	Pair Corr
0.69	VMSIX	Vanguard Multi Sector	Pair Corr
0.67	VAGVX	Vanguard Advice Select	Pair Corr
0.7	VAIGX	Vanguard Advice Select	Pair Corr
0.96	VSCGX	Vanguard Lifestrategy	Pair Corr

Related Correlations Analysis

	TBLDX	PRVBX	WRLDX	FMUUX	FUHKBX	VIPIX
TBLDX		0.48	0.88	0.48	0.2	0.53	TBLDX
PRVBX	0.48		0.78	0.94	-0.4	0.96	PRVBX
WRLDX	0.88	0.78		0.77	-0.13	0.83	WRLDX
FMUUX	0.48	0.94	0.77		-0.42	0.93	FMUUX
FUHKBX	0.2	-0.4	-0.13	-0.42		-0.4	FUHKBX
VIPIX	0.53	0.96	0.83	0.93	-0.4		VIPIX
	TBLDX	PRVBX	WRLDX	FMUUX	FUHKBX	VIPIX

Click cells to compare fundamentals

Check Volatility

Backtest Portfolio

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

VIPIX	+ 0.96	PRVBX
FMUUX	+ 0.94	PRVBX
VIPIX	+ 0.93	FMUUX
WRLDX	+ 0.88	TBLDX
VIPIX	+ 0.83	WRLDX
WRLDX	+ 0.78	PRVBX

High negative correlations

FUHKBX	- 0.42	FMUUX
VIPIX	- 0.4	FUHKBX
FUHKBX	- 0.4	PRVBX
FUHKBX	- 0.13	WRLDX

Risk-Adjusted Indicators

There is a big difference between VANGUARD Mutual Fund performing well and Vanguard Target 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 Target'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
TBLDX	0.38	0.00	0.00	0.03	0.54	(0.36)	0.70	(0.80)	2.12
PRVBX	0.10	0.01	0.11	(0.48)	0.00	(0.13)	0.23	(0.17)	0.53
WRLDX	0.59	0.05	0.07	(0.30)	0.76	(0.59)	1.24	(1.46)	2.96
FMUUX	0.03	0.00	0.00	(0.05)	0.00	0.00	0.10	0.00	0.40
FUHKBX	0.68	(0.02)	0.00	(0.03)	0.00	0.00	1.13	(1.61)	4.79
VIPIX	0.21	0.03	0.14	1.03	0.09	(0.27)	0.53	(0.44)	1.30

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2024 Macroaxis LLC