Small Cap Correlations

VCSLX Fund

USD 18.88 0.04 0.21%

The current 90-days correlation between Small Cap Index and Blue Chip Growth is 0.65 (i.e., Poor diversification). The correlation of Small Cap 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.

Small Cap Correlation With Market

Almost no diversification

The correlation between Small Cap Index and DJI is 0.91 (i.e., Almost no diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Small Cap 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 Small Cap Index. 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 Small Mutual Fund

0.96	VMIDX	Mid Cap Index	Pair Corr
0.81	VMSGX	Mid Cap Strategic	Pair Corr
0.84	VSRDX	Valic Company I	Pair Corr
0.85	VSTIX	Stock Index Fund	Pair Corr
0.95	VSSVX	Small Cap Special	Pair Corr
0.95	VBCVX	Broad Cap Value	Pair Corr
0.64	VCAAX	Asset Allocation	Pair Corr
0.64	VCBDX	Valic Company I	Pair Corr
0.72	VCGAX	Growth Income	Pair Corr
0.82	VCGEX	Emerging Economies	Pair Corr
0.86	VCFVX	Foreign Value	Pair Corr
0.87	VCIEX	International Equities	Pair Corr
0.71	VCIFX	International Government	Pair Corr
0.91	VCIGX	Valic Company I	Pair Corr
0.8	VCINX	International Growth	Pair Corr
0.86	VCSOX	Global Social Awareness	Pair Corr
0.83	VDAFX	Dynamic Allocation	Pair Corr
0.91	VVMCX	Valic Company I	Pair Corr
0.92	VVSGX	Valic Company I	Pair Corr
0.92	VGCLX	Valic Company I	Pair Corr
0.9	VGLSX	Global Strategy	Pair Corr
0.68	VGREX	Global Real Estate	Pair Corr
0.94	VHYLX	Valic Company I	Pair Corr
0.91	VIOPX	Valic Company I	Pair Corr
0.94	VLAGX	Valic Company I	Pair Corr
0.74	VLCGX	Large Capital Growth	Pair Corr
0.99	VSMAX	Vanguard Small Cap	Pair Corr
0.99	VSCPX	Vanguard Small Cap	Pair Corr
0.99	NAESX	Vanguard Small Cap	Pair Corr
0.97	DFSTX	Us Small Cap	Pair Corr

Related Correlations Analysis

	VMIDX	VMSGX	VAPPX	VSRDX	VSTIX	VSSVX	VBCVX	VCAAX	VCBDX	VCBCX
VMIDX		0.69	-0.3	0.76	0.79	0.98	0.98	0.55	0.77	-0.27	VMIDX
VMSGX	0.69		0.41	0.93	0.88	0.62	0.67	0.84	0.33	0.43	VMSGX
VAPPX	-0.3	0.41		0.34	0.3	-0.35	-0.26	0.57	-0.5	0.99	VAPPX
VSRDX	0.76	0.93	0.34		0.96	0.7	0.78	0.88	0.43	0.36	VSRDX
VSTIX	0.79	0.88	0.3	0.96		0.75	0.82	0.92	0.47	0.34	VSTIX
VSSVX	0.98	0.62	-0.35	0.7	0.75		0.97	0.5	0.76	-0.32	VSSVX
VBCVX	0.98	0.67	-0.26	0.78	0.82	0.97		0.57	0.71	-0.23	VBCVX
VCAAX	0.55	0.84	0.57	0.88	0.92	0.5	0.57		0.33	0.62	VCAAX
VCBDX	0.77	0.33	-0.5	0.43	0.47	0.76	0.71	0.33		-0.45	VCBDX
VCBCX	-0.27	0.43	0.99	0.36	0.34	-0.32	-0.23	0.62	-0.45		VCBCX
	VMIDX	VMSGX	VAPPX	VSRDX	VSTIX	VSSVX	VBCVX	VCAAX	VCBDX	VCBCX

Please upgrade your account to get full access to Macroaxis premium features

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

VCBCX	+ 0.99	VAPPX
VSSVX	+ 0.98	VMIDX
VBCVX	+ 0.98	VMIDX
VBCVX	+ 0.97	VSSVX
VSTIX	+ 0.96	VSRDX
VSRDX	+ 0.93	VMSGX

High negative correlations

VCBDX	- 0.5	VAPPX
VCBCX	- 0.45	VCBDX
VSSVX	- 0.35	VAPPX
VCBCX	- 0.32	VSSVX
VAPPX	- 0.3	VMIDX
VCBCX	- 0.27	VMIDX

Risk-Adjusted Indicators

There is a big difference between Small Mutual Fund performing well and Small Cap 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 Small Cap'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
VMIDX	0.72	0.13	0.09	1.23	0.67	(0.77)	1.83	(1.39)	4.47
VMSGX	0.87	0.00	(0.04)	0.00	1.13	(0.92)	1.56	(2.00)	5.44
VAPPX	0.74	(0.10)	0.00	3.39	0.00	0.00	1.29	(2.03)	4.84
VSRDX	0.65	0.01	(0.05)	(0.03)	0.91	(0.64)	1.16	(1.69)	4.24
VSTIX	0.55	0.01	(0.06)	(0.08)	0.79	(0.55)	0.99	(1.53)	3.60
VSSVX	0.81	0.17	0.15	1.34	0.56	(1.03)	2.44	(1.08)	4.87
VBCVX	0.55	0.09	0.05	5.74	0.55	(0.59)	1.41	(1.07)	3.29
VCAAX	0.34	(0.01)	0.00	0.57	0.00	0.00	0.71	(0.70)	2.34
VCBDX	0.15	0.01	(0.19)	0.19	0.00	(0.21)	0.30	(0.29)	0.69
VCBCX	0.75	(0.09)	0.00	2.19	0.00	0.00	1.29	(1.86)	4.84

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

2026 Macroaxis LLC