Vanguard Materials Correlations

Etfs . USA . 
Etf . Vanguard Materials Index
VAW Etf  USD 199.78  0.59  0.29%   
The current 90-days correlation between Vanguard Materials Index and Vanguard Industrials Index is 0.78 (i.e., Poor diversification). The correlation of Vanguard Materials 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 Materials Correlation With Market

Very weak diversification

The correlation between Vanguard Materials Index and DJI is 0.52 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Materials 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 Materials 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 nation.

Moving together with Vanguard Etf

  0.63EV Mast Global BatteryPairCorr
  1.0XLB Materials Select SectorPairCorr
  0.96XME SPDR SP MetalsPairCorr
  0.96PHO Invesco Water ResourcesPairCorr
  0.83MOO VanEck Agribusiness ETFPairCorr
  0.97FXZ First Trust MaterialsPairCorr
  0.95FIW First Trust WaterPairCorr
  0.72URNM Sprott Uranium MinersPairCorr
  0.99IYM iShares Basic MaterialsPairCorr
  0.95WTRE WisdomTree New EconomyPairCorr
  0.75FIG Simplify Macro StrategyPairCorr
  0.87CRED Columbia ETF TrustPairCorr
  0.79HD Home DepotPairCorr
  0.88DD Dupont De NemoursPairCorr
  0.86XOM Exxon Mobil CorpPairCorr
  0.74JNJ Johnson JohnsonPairCorr
  0.78HPQ HP IncPairCorr
  0.79AA Alcoa CorpPairCorr
  0.67PG Procter GamblePairCorr

Moving against Vanguard Etf

  0.68BA BoeingPairCorr
  0.51PFE Pfizer IncPairCorr

Related Correlations Analysis

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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   
VPU
+ 0.85
VIS
VCR
+ 0.64
VOX
VPU
+ 0.56
VDC
VDC
+ 0.53
VIS
VDC
+ 0.35
VOX
VDC
+ 0.21
VCR
  
High negative correlations   
VPU
- 0.27
VCR
VCR
- 0.14
VIS
VOX
- 0.08
VIS
VPU
- 0.05
VOX

Vanguard Materials Constituents Risk-Adjusted Indicators

There is a big difference between Vanguard Etf performing well and Vanguard Materials 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 Materials' 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.

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