Vanguard Mid Correlations

VIMAX Fund  USD 356.55  2.40  0.68%   
The current 90-days correlation between Vanguard Mid Cap and Vanguard Small Cap Index is 0.9 (i.e., Almost no diversification). The correlation of Vanguard Mid 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 Mid Correlation With Market

Very poor diversification

The correlation between Vanguard Mid Cap Index and DJI is 0.86 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Mid Cap Index 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 Mid Cap Index. 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 nation.

Moving together with Vanguard Mutual Fund

  1.0VIMSX Vanguard Mid CapPairCorr
  0.85VMCPX Vanguard Mid CapPairCorr
  0.85VMCIX Vanguard Mid CapPairCorr
  1.0VEXAX Vanguard Extended MarketPairCorr
  0.86VEMPX Vanguard Extended MarketPairCorr
  0.68VSEMX Vanguard Extended MarketPairCorr
  0.9MAUKX Pioneer Multi AssetPairCorr

Moving against Vanguard Mutual Fund

  0.45TRV The Travelers CompaniesPairCorr
  0.33WMT WalmartPairCorr
  0.31VZ Verizon Communications Aggressive PushPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

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