Vanguard Total Correlations

VTSMX Fund  USD 127.41  0.91  0.72%   
The correlation of Vanguard Total 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 perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Vanguard Total moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Vanguard Total Stock moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Very poor diversification

The correlation between Vanguard Total Stock and NYA is 0.88 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Total Stock and NYA 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 Total Stock. Also, note that the market value of any mutual fund could be tightly coupled with the direction of predictive economic indicators such as signals in population.
The ability to find closely correlated positions to Vanguard Total could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Vanguard Total when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Vanguard Total - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Vanguard Total Stock to buy it.

Moving together with Vanguard Mutual Fund

  0.81VMIAX Vanguard Materials IndexPairCorr
  0.92VMNVX Vanguard Global MinimumPairCorr
  0.69VMMSX Vanguard Emerging MarketsPairCorr
  0.91VMSIX Vanguard Multi SectorPairCorr
  0.89VMVAX Vanguard Mid CapPairCorr
  0.89VMVIX Vanguard Mid CapPairCorr
  0.92VMVFX Vanguard Global MinimumPairCorr
  0.9VMVLX Vanguard Mega CapPairCorr
  0.76VPADX Vanguard Pacific StockPairCorr
  0.76VPACX Vanguard Pacific StockPairCorr
  0.98VPCCX Vanguard PrimecapPairCorr

Related Correlations Analysis

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   
High negative correlations   

Risk-Adjusted Indicators

There is a big difference between Vanguard Mutual Fund performing well and Vanguard Total 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 Total'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 DeviationJensen AlphaSortino RatioTreynor RatioSemi DeviationExpected ShortfallPotential UpsideValue @RiskMaximum Drawdown
VMIAX  0.56  0.04  0.05  0.08  0.65 
VMLUX  0.06 (0.01)(0.31)(0.54) 0.08 
VMLTX  0.06 (0.01) 0.00 (0.42) 0.00 
VMNVX  0.30 (0.01)(0.07) 0.02  0.30 
VMMSX  0.58  0.07  0.08  0.12  0.69 
VMNIX  0.31 (0.01)(0.11) 0.26  0.38 
VMNFX  0.30 (0.01)(0.11) 0.21  0.38 
VMSIX  0.17  0.00 (0.10) 0.05  0.14 
VMVAX  0.51  0.02  0.03  0.06  0.70 
VMVIX  0.51  0.02  0.03  0.06  0.70 

Be your own money manager

Our tools can tell you how much better you can do entering a position in Vanguard Total without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

Did you try this?

Run Portfolio Center Now


Portfolio Center

All portfolio management and optimization tools to improve performance of your portfolios
All  Next Launch Module

Already Invested in Vanguard Total Stock?

The danger of trading Vanguard Total Stock is mainly related to its market volatility and Mutual Fund specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Vanguard Total is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Vanguard Total. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Vanguard Total Stock is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Vanguard Total Stock. Also, note that the market value of any mutual fund could be tightly coupled with the direction of predictive economic indicators such as signals in population.
You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Please note, there is a significant difference between Vanguard Total's value and its price as these two are different measures arrived at by different means. Investors typically determine if Vanguard Total is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vanguard Total's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.