Vanguard Dividend Correlations

VDIGX Fund

USD 41.10 0.22 0.54%

The current 90-days correlation between Vanguard Dividend Growth and Vanguard Equity Income is 0.73 (i.e., Poor diversification). The correlation of Vanguard Dividend 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 Dividend Correlation With Market

Poor diversification

The correlation between Vanguard Dividend Growth and DJI is 0.77 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Dividend Growth 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 Dividend Growth. 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

0.64	VMNVX	Vanguard Global Minimum	Pair Corr
0.65	VRTPX	Vanguard Reit Ii	Pair Corr
0.96	VADGX	Vanguard Advice Select	Pair Corr
0.72	VSCGX	Vanguard Lifestrategy	Pair Corr
0.69	VSCSX	Vanguard Short Term	Pair Corr

Related Correlations Analysis

	VEIPX	VWINX	VGHCX	VWELX	VASVX
VEIPX		0.35	-0.73	0.91	0.91	VEIPX
VWINX	0.35		0.1	0.39	0.3	VWINX
VGHCX	-0.73	0.1		-0.67	-0.56	VGHCX
VWELX	0.91	0.39	-0.67		0.86	VWELX
VASVX	0.91	0.3	-0.56	0.86		VASVX
	VEIPX	VWINX	VGHCX	VWELX	VASVX

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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

VWELX	+ 0.91	VEIPX
VASVX	+ 0.91	VEIPX
VASVX	+ 0.86	VWELX
VWELX	+ 0.39	VWINX
VWINX	+ 0.35	VEIPX
VASVX	+ 0.3	VWINX

High negative correlations

VGHCX	- 0.73	VEIPX
VWELX	- 0.67	VGHCX
VASVX	- 0.56	VGHCX

Risk-Adjusted Indicators

There is a big difference between Vanguard Mutual Fund performing well and Vanguard Dividend 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 Dividend'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
VEIPX	0.49	0.01	(0.02)	0.11	0.38	(0.58)	1.07	(0.82)	3.73
VWINX	0.23	0.00	(0.32)	(0.87)	0.27	(0.24)	0.46	(0.42)	1.42
VGHCX	0.57	(0.21)	0.00	(1.96)	0.00	0.00	0.75	(1.29)	3.84
VWELX	0.39	0.04	(0.11)	(0.72)	0.50	(0.40)	0.81	(0.82)	2.48
VASVX	0.65	(0.04)	(0.05)	0.06	0.66	(0.72)	1.49	(1.17)	4.72

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