Vanguard Developed Correlations

VTMGX Fund

USD 16.59 0.02 0.12%

The current 90-days correlation between Vanguard Developed and Vanguard Emerging Markets is 0.59 (i.e., Very weak diversification). The correlation of Vanguard Developed 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 Developed Correlation With Market

Very weak diversification

The correlation between Vanguard Developed Markets and DJI is 0.49 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Developed Markets 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 Developed Markets. 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 price.

Moving together with Vanguard Mutual Fund

0.61	VMIAX	Vanguard Materials Index	Pair Corr
0.8	VMNVX	Vanguard Global Minimum	Pair Corr
0.81	VMMSX	Vanguard Emerging Markets	Pair Corr
0.91	VMVFX	Vanguard Global Minimum	Pair Corr
0.9	VPADX	Vanguard Pacific Stock	Pair Corr
0.9	VPACX	Vanguard Pacific Stock	Pair Corr
0.65	VPCCX	Vanguard Primecap	Pair Corr
0.83	VPKIX	Vanguard Pacific Stock	Pair Corr
0.65	VPMCX	Vanguard Primecap	Pair Corr
0.91	VPMAX	Vanguard Primecap	Pair Corr
0.92	VSCSX	Vanguard Short Term	Pair Corr
0.74	VSBSX	Vanguard Short Term	Pair Corr
0.87	VSVNX	Vanguard Target Reti	Pair Corr
0.75	VBIAX	Vanguard Balanced Index	Pair Corr
0.61	VBIIX	Vanguard Intermediate-ter	Pair Corr

Related Correlations Analysis

	VEMAX	VTMSX	VSMAX	VVIAX	VGSLX
VEMAX		0.27	0.21	0.43	0.51	VEMAX
VTMSX	0.27		0.59	0.25	0.29	VTMSX
VSMAX	0.21	0.59		0.72	0.8	VSMAX
VVIAX	0.43	0.25	0.72		0.81	VVIAX
VGSLX	0.51	0.29	0.8	0.81		VGSLX
	VEMAX	VTMSX	VSMAX	VVIAX	VGSLX

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Risk-Adjusted Indicators

There is a big difference between Vanguard Mutual Fund performing well and Vanguard Developed 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 Developed'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
VEMAX	0.54	0.04	0.05	0.18	0.75	(0.53)	1.12	(1.37)	3.43
VTMSX	0.74	(0.18)	0.00	(0.26)	0.00	0.00	1.43	(2.05)	4.61
VSMAX	0.74	(0.06)	0.00	(0.08)	0.00	0.00	1.47	(1.21)	5.67
VVIAX	0.53	0.00	0.01	0.00	0.69	(0.56)	1.11	(1.01)	3.74
VGSLX	0.80	(0.02)	0.00	(0.04)	0.00	0.00	1.42	(1.56)	5.41

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Vanguard Developed Correlations

Vanguard Developed Correlation With Market

Very weak diversification

Moving together with Vanguard Mutual Fund

Related Correlations Analysis

Risk-Adjusted Indicators

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