| VMNFX Fund | | | USD 13.20 0.02 0.15% |
The current 90-days correlation between Vanguard Market Neutral and Vanguard Commodity Strategy is -0.06 (i.e., Good diversification). The correlation of Vanguard Market 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 Market Correlation With Market
Significant diversification
The correlation between Vanguard Market Neutral and DJI is 0.09 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Market Neutral 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 Market Neutral. 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 census.