| VASIX Fund | | | USD 15.73 0.03 0.19% |
The current 90-days correlation between Vanguard Lifestrategy and Fidelity Asset Manager is 0.95 (i.e., Almost no diversification). The correlation of Vanguard Lifestrategy 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 Lifestrategy Correlation With Market
Weak diversification
The correlation between Vanguard Lifestrategy Income and DJI is 0.33 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Lifestrategy Income and DJI in the same portfolio, assuming nothing else is changed.
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World Market Map to better understand how to build diversified portfolios, which includes a position in Vanguard Lifestrategy Income. 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 gross domestic product.