Vanguard Limited-term Correlations

VMLUX Fund

USD 10.91 0.01 0.09%

The current 90-days correlation between Vanguard Limited Term and Vanguard Intermediate Term Tax Exempt is 0.85 (i.e., Very poor diversification). The correlation of Vanguard Limited-term 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 Limited-term Correlation With Market

Significant diversification

The correlation between Vanguard Limited Term Tax Exem and DJI is 0.02 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Limited Term Tax Exem 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 Limited Term Tax Exempt. 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 employment.

Moving together with Vanguard Mutual Fund

1.0	VMLTX	Vanguard Limited Term	Pair Corr
0.71	VMNVX	Vanguard Global Minimum	Pair Corr
0.7	VMSIX	Vanguard Multi Sector	Pair Corr
0.71	VMVFX	Vanguard Global Minimum	Pair Corr
0.62	VOHIX	Vanguard Ohio Long	Pair Corr
0.62	VPALX	Vanguard Pennsylvania	Pair Corr
0.62	VPAIX	Vanguard Pennsylvania	Pair Corr
0.72	VAIPX	Vanguard Inflation-protec	Pair Corr
0.84	VSCSX	Vanguard Short Term	Pair Corr
0.66	VSBIX	Vanguard Short Term	Pair Corr
0.66	VSBSX	Vanguard Short Term	Pair Corr

Moving against Vanguard Mutual Fund

0.57	VMNFX	Vanguard Market Neutral	Pair Corr
0.56	VMNIX	Vanguard Market Neutral	Pair Corr
0.54	NAESX	Vanguard Small Cap	Pair Corr
0.44	VQNPX	Vanguard Growth And	Pair Corr
0.38	VMVAX	Vanguard Mid Cap	Pair Corr
0.38	VMVIX	Vanguard Mid Cap	Pair Corr
0.64	VSGAX	Vanguard Small Cap	Pair Corr
0.62	VSCIX	Vanguard Small Cap	Pair Corr
0.62	VSCPX	Vanguard Small Cap	Pair Corr
0.62	VSEQX	Vanguard Strategic Equity	Pair Corr
0.62	VSMAX	Vanguard Small Cap	Pair Corr
0.6	VSEMX	Vanguard Extended Market	Pair Corr
0.6	VSIAX	Vanguard Small Cap	Pair Corr
0.6	VSIIX	Vanguard Small Cap	Pair Corr
0.56	VSGIX	Vanguard Small Cap	Pair Corr

Related Correlations Analysis

	VWIUX	VWSUX	VWLUX	VWALX	VFSUX
VWIUX		0.53	0.87	0.89	0.64	VWIUX
VWSUX	0.53		0.43	0.56	0.75	VWSUX
VWLUX	0.87	0.43		0.99	0.34	VWLUX
VWALX	0.89	0.56	0.99		0.44	VWALX
VFSUX	0.64	0.75	0.34	0.44		VFSUX
	VWIUX	VWSUX	VWLUX	VWALX	VFSUX

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Risk-Adjusted Indicators

There is a big difference between Vanguard Mutual Fund performing well and Vanguard Limited-term 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 Limited-term'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 Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
VWIUX	0.16	0.00	0.64	0.34	0.16	(0.20)	0.30	(0.37)	0.89
VWSUX	0.05	0.01	2.23	1.36	0.00	(0.10)	0.13	(0.06)	0.38
VWLUX	0.21	0.00	0.47	(0.15)	0.24	(0.25)	0.46	(0.55)	1.21
VWALX	0.21	0.00	0.47	(0.27)	0.25	(0.25)	0.38	(0.56)	1.22
VFSUX	0.11	0.02	0.96	0.97	0.00	(0.16)	0.29	(0.19)	0.59

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