Wilshire 5000 Correlations
| WFIVX Fund | USD 29.13 0.28 0.97% |
The correlation of Wilshire 5000 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 Wilshire 5000 moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Wilshire 5000 Index 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 Wilshire 5000 Index and NYA is 0.87 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Wilshire 5000 Index and NYA in the same portfolio, assuming nothing else is changed.
Wilshire |
The ability to find closely correlated positions to Wilshire 5000 could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Wilshire 5000 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 Wilshire 5000 - 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 Wilshire 5000 Index to buy it.
Moving together with Wilshire Mutual Fund
| 0.8 | WSMGX | Small Pany Growth | PairCorr |
| 0.79 | WSMVX | Small Pany Value | PairCorr |
| 1.0 | WINDX | Wilshire 5000 Index | PairCorr |
| 0.97 | WLCGX | Large Pany Growth | PairCorr |
| 0.94 | WLCVX | Large Pany Value | PairCorr |
| 0.96 | WLCTX | Wilshire International | PairCorr |
| 0.97 | DTLGX | Wilshire Large | PairCorr |
| 0.94 | DTLVX | Large Pany Value | PairCorr |
| 0.79 | DTSVX | Small Pany Value | PairCorr |
| 0.8 | DTSGX | Small Pany Growth | PairCorr |
| 0.96 | WLTTX | Wilshire International | PairCorr |
| 1.0 | VTSAX | Vanguard Total Stock | PairCorr |
| 1.0 | VFIAX | Vanguard 500 Index | PairCorr |
| 1.0 | VTSMX | Vanguard Total Stock | PairCorr |
| 1.0 | VITSX | Vanguard Total Stock | PairCorr |
| 1.0 | VSMPX | Vanguard Total Stock | PairCorr |
| 1.0 | VSTSX | Vanguard Total Stock | PairCorr |
Related Correlations Analysis
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Risk-Adjusted Indicators
There is a big difference between Wilshire Mutual Fund performing well and Wilshire 5000 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 Wilshire 5000'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.Be your own money manager
Our tools can tell you how much better you can do entering a position in Wilshire 5000 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?
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Already Invested in Wilshire 5000 Index?
The danger of trading Wilshire 5000 Index 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 Wilshire 5000 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 Wilshire 5000. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Wilshire 5000 Index 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 Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Wilshire 5000 Index. 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 real. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.