Vanguard Emerging Correlations

Mutual Funds . USA . 
Fund . Vanguard Emerging Markets
VEMBX Fund  USD 10.18  0.01  0.1%   
The current 90-days correlation between Vanguard Emerging Markets and Vanguard E Bond is 0.78 (i.e., Poor diversification). The correlation of Vanguard Emerging 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 Emerging Correlation With Market

Significant diversification

The correlation between Vanguard Emerging Markets and DJI is 0.05 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Emerging Markets 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 Emerging Markets. 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 bureau of labor statistics.

Moving together with Vanguard Mutual Fund

  0.62VMLUX Vanguard Limited TermPairCorr
  0.62VMLTX Vanguard Limited TermPairCorr
  0.8VNYUX Vanguard New YorkPairCorr
  0.67VPALX Vanguard PennsylvaniaPairCorr
  0.86VSCSX Vanguard Short TermPairCorr
  0.71VSBIX Vanguard Short TermPairCorr
  0.81VSBSX Vanguard Short TermPairCorr
  0.78VSGDX Vanguard Short TermPairCorr
  0.78VSGBX Vanguard Short TermPairCorr
  0.73VSIGX Vanguard IntermediatePairCorr
  0.77VBILX Vanguard IntermediatePairCorr
  0.81VBISX Vanguard Short TermPairCorr
  0.81VBITX Vanguard Short TermPairCorr
  0.65VBIRX Vanguard Short TermPairCorr
  0.8VBMFX Vanguard Total BondPairCorr
  0.82VTAPX Vanguard Short TermPairCorr

Related Correlations Analysis

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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   
VGAVX
+ 0.92
VGCIX
VGAVX
+ 0.8
VCORX
VGCIX
+ 0.76
VCORX
VMMSX
+ 0.23
VCORX
VGAVX
+ 0.09
VMMSX
VGCIX
+ 0.07
VMMSX
  
High negative correlations   
VUBFX
- 0.48
VCORX
VUBFX
- 0.44
VMMSX

Risk-Adjusted Indicators

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

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