EMR vs VYM: Correlation
Measured on weekly returns over the past three years, Emerson Electric (EMR) and Vanguard High Dividend Yield ETF (VYM) carry a correlation of 0.70, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EMR and VYM?
Over the past 3 years, EMR and VYM moved with a correlation of 0.70, which is strong. The relationship has been stable: the 1-year correlation (0.64) sits close to the 3-year figure. Over 5 years the correlation is 0.70, and the annualized covariance of weekly returns is 244.0 %².
By 3-year correlation, VYM places #9 of the 47 assets tracked against EMR. Neither side won the trailing year by much: +20.0% against +21.1%. Across three years, the rolling one-year figure varied moderately, from 0.50 to 0.84. One caveat on sizing: EMR is 2.3 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.
EMR vs VYM: side by side
| EMR (Emerson Electric) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +20.0% | +21.1% |
| 5-year return | +65.4% | +76.6% |
| Volatility (ann.) | 28.3% | 12.3% |
| Beta vs S&P 500 | 1.29 | 0.69 |
| Max drawdown (3Y) | -29.6% | -14.5% |
| Market cap | $88.0B | – |
| P/E (trailing) | 34.5 | – |
| Dividend yield | 1.39% | 2.24% |
| Expense ratio | – | 0.04% |
| Assets under management | – | $99.2B |
| Sector / category | Industrials | 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 | EMR | VYM |
|---|---|---|
| 2022 | +5.7% | -0.4% |
| 2023 | +3.8% | +6.6% |
| 2024 | +29.7% | +17.6% |
| 2025 | +8.9% | +15.4% |
| 2026 | +20.2% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.34% of VYM is EMR itself, so the fund partly moves with the stock by construction.
Are EMR and VYM good diversifiers for each other?
Somewhat, no more. With 0.70 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between EMR and VYM?
The EMR/VYM correlation stands at 0.70 on a 3-year window (1 year: 0.64, 5 years: 0.70), computed from weekly returns as of 2026-08-27.
Is VYM a good diversifier for EMR?
Somewhat, no more. With 0.70 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.70 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.
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Related comparisons
Hubs: EMR correlations · VYM correlations
