Vanguard Target Correlations

VSVNX Fund

27.70 0.08 0.29%

The current 90-days correlation between Vanguard Target Reti and Simt High Yield is 0.45 (i.e., Very weak diversification). The correlation of Vanguard Target 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 Target Correlation With Market

Very weak diversification

The correlation between Vanguard Target Retirement and DJI is 0.41 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Target Retirement 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 Target Retirement. 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 Vanguard Mutual Fund

1.0	VLXVX	Vanguard Target Reti	Pair Corr
0.94	FBMTX	American Funds 2065	Pair Corr
0.93	RCPTX	American Funds 2065	Pair Corr
0.93	FAXTX	American Funds 2065	Pair Corr
0.93	RBEOX	American Funds 2065	Pair Corr
0.94	AAOTX	American Funds 2065	Pair Corr
0.94	RDLTX	American Funds 2065	Pair Corr
0.94	RHLTX	American Funds 2065	Pair Corr
0.94	RFVTX	American Funds 2065	Pair Corr
0.93	RBOTX	American Funds 2065	Pair Corr
0.62	PDI	Pimco Dynamic Income	Pair Corr

Moving against Vanguard Mutual Fund

0.75	UIPIX	Ultrashort Mid Cap	Pair Corr
0.6	USPIX	Profunds Ultrashort	Pair Corr
0.59	USPSX	Profunds Ultrashort	Pair Corr

Related Correlations Analysis

	SEIYX	TIYRX	NHIEX	PHDTX	CRDOX	DNHYX
SEIYX		0.96	0.89	0.52	0.92	0.95	SEIYX
TIYRX	0.96		0.97	0.47	0.93	0.96	TIYRX
NHIEX	0.89	0.97		0.36	0.93	0.91	NHIEX
PHDTX	0.52	0.47	0.36		0.41	0.5	PHDTX
CRDOX	0.92	0.93	0.93	0.41		0.97	CRDOX
DNHYX	0.95	0.96	0.91	0.5	0.97		DNHYX
	SEIYX	TIYRX	NHIEX	PHDTX	CRDOX	DNHYX

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Risk-Adjusted Indicators

There is a big difference between Vanguard Mutual Fund performing well and Vanguard Target 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 Target'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
SEIYX	0.14	0.01	(0.32)	0.19	0.04	(0.28)	0.20	(0.20)	1.18
TIYRX	0.13	0.01	(0.30)	0.17	0.05	(0.20)	0.23	(0.23)	1.14
NHIEX	0.15	0.01	(0.26)	0.43	0.00	(0.24)	0.53	(0.26)	1.32
PHDTX	0.11	0.02	(0.33)	0.69	0.00	(0.14)	0.23	(0.23)	0.79
CRDOX	0.11	0.01	(0.35)	0.40	0.00	(0.15)	0.23	(0.23)	0.68
DNHYX	0.14	0.01	(0.29)	0.25	0.08	(0.18)	0.23	(0.23)	0.93

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