Vanguard Short Correlations

VFISX Fund

USD 9.82 0.01 0.10%

The current 90-days correlation between Vanguard Short Term and Vanguard Intermediate Term Treasury is 0.82 (i.e., Very poor diversification). The correlation of Vanguard Short 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 Short Correlation With Market

Significant diversification

The correlation between Vanguard Short Term Treasury and DJI is 0.06 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Short Term Treasury 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 Short Term Treasury. 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 state.

Moving together with Vanguard Mutual Fund

0.71	VMLTX	Vanguard Limited Term	Pair Corr
0.64	VCDAX	Vanguard Sumer Discr	Pair Corr
0.75	VUBFX	Vanguard Ultra-short-term	Pair Corr
0.75	VUSFX	Vanguard Ultra-short-term	Pair Corr
0.78	VWEHX	Vanguard High Yield	Pair Corr
0.86	VWSTX	Vanguard Short Term	Pair Corr

Moving against Vanguard Mutual Fund

0.32	VMMSX	Vanguard Emerging Markets	Pair Corr
0.41	VGHCX	Vanguard Health Care	Pair Corr

Related Correlations Analysis

	VFITX	VUSTX	VSGBX	VBISX	VIPSX
VFITX		0.9	0.29	0.55	0.91	VFITX
VUSTX	0.9		-0.11	0.18	0.89	VUSTX
VSGBX	0.29	-0.11		0.94	0.14	VSGBX
VBISX	0.55	0.18	0.94		0.4	VBISX
VIPSX	0.91	0.89	0.14	0.4		VIPSX
	VFITX	VUSTX	VSGBX	VBISX	VIPSX

Click cells to compare fundamentals

Check Volatility

Backtest Portfolio

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

VBISX	+ 0.94	VSGBX
VIPSX	+ 0.91	VFITX
VUSTX	+ 0.9	VFITX
VIPSX	+ 0.89	VUSTX
VBISX	+ 0.55	VFITX
VIPSX	+ 0.4	VBISX

High negative correlations

VSGBX

- 0.11

VUSTX

Risk-Adjusted Indicators

There is a big difference between Vanguard Mutual Fund performing well and Vanguard Short 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 Short'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
VFITX	0.21	(0.02)	0.00	(0.23)	0.00	0.00	0.52	(0.41)	1.43
VUSTX	0.59	(0.07)	0.00	(0.32)	0.00	0.00	1.28	(1.24)	3.55
VSGBX	0.11	0.00	(0.61)	0.12	0.00	(0.18)	0.30	(0.20)	0.79
VBISX	0.10	0.00	(0.59)	(0.12)	0.06	(0.18)	0.30	(0.20)	0.79
VIPSX	0.19	(0.02)	0.00	(0.31)	0.00	0.00	0.43	(0.44)	1.30

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

2024 Macroaxis LLC