Vanguard High Correlations

VWEHX Fund  USD 5.41  0.01  0.18%   
The current 90-days correlation between Vanguard High Yield and Vanguard Short Term Investment Grade is 0.76 (i.e., Poor diversification). The correlation of Vanguard High 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 High Correlation With Market

Weak diversification

The correlation between Vanguard High Yield Porate and DJI is 0.39 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard High Yield Porate 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 High Yield Porate. 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 rate.

Moving together with Vanguard Mutual Fund

  0.92VMLUX Vanguard Limited TermPairCorr
  0.9VMLTX Vanguard Limited TermPairCorr
  0.93VMNVX Vanguard Global MinimumPairCorr
  0.66VMMSX Vanguard Emerging MarketsPairCorr
  0.98VMSIX Vanguard Multi SectorPairCorr
  0.93VMVFX Vanguard Global MinimumPairCorr
  0.87VMVLX Vanguard Mega CapPairCorr
  0.88VNJUX Vanguard New JerseyPairCorr
  0.89VNJTX Vanguard New JerseyPairCorr
  0.89VNYTX Vanguard New YorkPairCorr
  0.89VNYUX Vanguard New YorkPairCorr
  0.9VOHIX Vanguard Ohio LongPairCorr
  0.83VPADX Vanguard Pacific StockPairCorr
  0.83VPACX Vanguard Pacific StockPairCorr
  0.94VPCCX Vanguard Primecap Potential GrowthPairCorr
  0.87VPALX Vanguard PennsylvaniaPairCorr
  0.87VPAIX Vanguard PennsylvaniaPairCorr
  0.83VPKIX Vanguard Pacific StockPairCorr
  0.95VPMCX Vanguard PrimecapPairCorr
  0.95VPMAX Vanguard PrimecapPairCorr
  0.94VQNPX Vanguard Growth AndPairCorr
  0.91VRTPX Vanguard Reit IiPairCorr
  0.83VADGX Vanguard Advice SelectPairCorr
  0.71VAGVX Vanguard Advice SelectPairCorr
  0.71VAIGX Vanguard Advice SelectPairCorr
  0.96VAIPX Vanguard Inflation-protecPairCorr
  0.96VSCGX Vanguard LifestrategyPairCorr
  0.98VSCSX Vanguard Short TermPairCorr
  0.97VSBIX Vanguard Short TermPairCorr
  0.97VSBSX Vanguard Short TermPairCorr
  0.66VSEMX Vanguard Extended MarketPairCorr
  0.66VSEQX Vanguard Strategic EquityPairCorr

Moving against Vanguard Mutual Fund

  0.54VMNFX Vanguard Market NeutralPairCorr
  0.53VMNIX Vanguard Market NeutralPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between Vanguard Mutual Fund performing well and Vanguard High 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 High'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.