Vanguard Target Correlations

VTWNX Fund

USD 29.47 0.14 0.48%

The current 90-days correlation between Vanguard Target Reti and Vanguard Target Retirement is 0.98 (i.e., Almost no 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

Poor diversification

The correlation between Vanguard Target Retirement and DJI is 0.65 (i.e., Poor 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

0.8	VMIAX	Vanguard Materials Index	Pair Corr
0.67	VMNVX	Vanguard Global Minimum	Pair Corr
0.73	VMSIX	Vanguard Multi Sector	Pair Corr
0.67	VMVFX	Vanguard Global Minimum	Pair Corr
0.61	VMVLX	Vanguard Mega Cap	Pair Corr
0.64	VPCCX	Vanguard Primecap	Pair Corr
0.69	VPMCX	Vanguard Primecap	Pair Corr
0.69	VPMAX	Vanguard Primecap	Pair Corr
0.68	VADGX	Vanguard Advice Select	Pair Corr
0.82	VAGVX	Vanguard Advice Select	Pair Corr
0.65	VAIGX	Vanguard Advice Select	Pair Corr
1.0	VSCGX	Vanguard Lifestrategy	Pair Corr

Related Correlations Analysis

	VTTVX	VTHRX	VTINX	VFORX	VFIFX
VTTVX		0.99	0.89	0.96	0.82	VTTVX
VTHRX	0.99		0.83	0.98	0.86	VTHRX
VTINX	0.89	0.83		0.72	0.55	VTINX
VFORX	0.96	0.98	0.72		0.91	VFORX
VFIFX	0.82	0.86	0.55	0.91		VFIFX
	VTTVX	VTHRX	VTINX	VFORX	VFIFX

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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
VTTVX	0.30	(0.02)	(0.22)	0.08	0.32	(0.33)	0.64	(0.64)	1.69
VTHRX	0.34	(0.02)	(0.18)	0.08	0.39	(0.34)	0.76	(0.70)	2.01
VTINX	0.21	(0.01)	(0.39)	0.08	0.18	(0.23)	0.44	(0.37)	1.24
VFORX	0.41	(0.02)	(0.14)	0.09	0.47	(0.42)	0.88	(0.78)	2.49
VFIFX	0.48	0.04	(0.14)	(4.40)	0.60	(0.50)	1.09	(0.94)	2.94

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Vanguard Target Correlations

Vanguard Target Correlation With Market

Poor diversification

Moving together with Vanguard Mutual Fund

Related Correlations Analysis

Risk-Adjusted Indicators

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