Vanguard Emerging Correlations

VEMRX Fund

USD 92.22 0.58 0.63%

The current 90-days correlation between Vanguard Emerging Markets and Franklin Small Cap is 0.34 (i.e., Weak diversification). The correlation of Vanguard Emerging 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 Emerging Correlation With Market

Weak diversification

The correlation between Vanguard Emerging Markets and DJI is 0.38 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Emerging 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 Emerging 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 metropolitan statistical area.

Moving together with Vanguard Mutual Fund

0.95	VMMSX	Vanguard Emerging Markets	Pair Corr
0.63	VPACX	Vanguard Pacific Stock	Pair Corr
0.65	VPMCX	Vanguard Primecap	Pair Corr
0.68	VSCGX	Vanguard Lifestrategy	Pair Corr
0.64	VASGX	Vanguard Lifestrategy	Pair Corr

Moving against Vanguard Mutual Fund

0.42	VSBSX	Vanguard Short Term	Pair Corr
0.34	VSBIX	Vanguard Short Term	Pair Corr

Related Correlations Analysis

	FCSGX	ASCGX	DFDSX	MMSCX	GLVIX	KSCYX
FCSGX		0.95	0.92	0.95	0.56	0.82	FCSGX
ASCGX	0.95		0.85	0.87	0.71	0.66	ASCGX
DFDSX	0.92	0.85		0.98	0.45	0.76	DFDSX
MMSCX	0.95	0.87	0.98		0.46	0.8	MMSCX
GLVIX	0.56	0.71	0.45	0.46		0.04	GLVIX
KSCYX	0.82	0.66	0.76	0.8	0.04		KSCYX
	FCSGX	ASCGX	DFDSX	MMSCX	GLVIX	KSCYX

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Risk-Adjusted Indicators

There is a big difference between Vanguard Mutual Fund performing well and Vanguard Emerging 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 Emerging'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
FCSGX	0.90	0.08	0.05	0.20	1.12	(0.95)	1.70	(1.49)	9.09
ASCGX	1.14	0.06	0.03	0.11	1.50	(1.11)	2.24	(2.22)	8.49
DFDSX	0.79	(0.01)	(0.02)	0.01	1.06	(0.82)	1.57	(1.40)	8.01
MMSCX	0.86	0.02	0.00	0.06	1.09	(0.94)	1.68	(1.55)	10.01
GLVIX	0.76	0.04	0.02	0.16	1.02	(0.80)	1.35	(1.37)	5.26
KSCYX	1.72	0.26	0.09	0.28	2.41	(1.69)	3.29	(4.04)	16.43

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