EHC vs VYM: Correlation
Measured on weekly returns over the past three years, Encompass Health Corporation (EHC) and Vanguard High Dividend Yield ETF (VYM) carry a correlation of 0.48, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EHC and VYM?
On 3 years of weekly data the EHC/VYM correlation comes out at 0.48, moderate. The relationship has been stable: the 1-year correlation (0.49) sits close to the 3-year figure. The 5-year figure is 0.48, and annualized covariance runs at 145.5 %².
Among the 15 assets we track against EHC, VYM ranks #4 by 3-year correlation. Correlation aside, the last 12 months split them widely, with VYM ahead by 23.7 points (-2.6% versus +21.1%). One caveat on sizing: EHC is 2.0 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
EHC vs VYM: side by side
| EHC (Encompass Health Corporation) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | -2.6% | +21.1% |
| 5-year return | +101.2% | +76.6% |
| Volatility (ann.) | 24.5% | 12.3% |
| Beta vs S&P 500 | 0.61 | 0.69 |
| Max drawdown (3Y) | -26.1% | -14.5% |
| Market cap | $11.8B | – |
| P/E (trailing) | 20.2 | – |
| Dividend yield | 0.63% | 2.24% |
| Expense ratio | – | 0.04% |
| Assets under management | – | $99.2B |
| Sector / category | US Listed | ETF · Dividend |
VYM, Vanguard's Large Value fund, carries $99.2B under management, 604 holdings, a 0.04% expense ratio, a 2.24% trailing dividend yield.
Year-by-year returns
| Year | EHC | VYM |
|---|---|---|
| 2022 | +17.0% | -0.4% |
| 2023 | +12.6% | +6.6% |
| 2024 | +39.2% | +17.6% |
| 2025 | +15.7% | +15.4% |
| 2026 | +13.3% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EHC and VYM good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.48 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between EHC and VYM?
Using weekly returns as of 2026-08-27: 0.48 over 3 years, with 0.49 over the last year and 0.48 over 5 years.
Is VYM a good diversifier for EHC?
Yes, to a useful degree: a correlation of 0.48 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.48 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ehc-vs-vym.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ehc-vs-vym/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EHC correlations · VYM correlations
