HON vs VYM: Correlation
Measured on weekly returns over the past three years, Honeywell Technologies (HON) and Vanguard High Dividend Yield ETF (VYM) carry a correlation of 0.56, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HON and VYM?
Over the past 3 years, HON and VYM moved with a correlation of 0.56, which is moderate. Recent behaviour matches the longer record: 0.47 over 1 year against 0.56 over 3. Over 5 years the correlation is 0.63, and the annualized covariance of weekly returns is 159.8 %².
VYM is one of the assets that tracks HON most closely: it ranks #3 out of the 32 assets we track against HON. The last year tells two different stories: VYM led by 18.4 percentage points, +2.7% for HON against +21.1% for VYM. Across three years, the rolling one-year figure varied moderately, from 0.44 to 0.76. One caveat on sizing: HON is 1.9 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.
HON vs VYM: side by side
| HON (Honeywell Technologies) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +2.7% | +21.1% |
| 5-year return | +6.6% | +76.6% |
| Volatility (ann.) | 23.2% | 12.3% |
| Beta vs S&P 500 | 0.74 | 0.69 |
| Max drawdown (3Y) | -22.1% | -14.5% |
| Market cap | $69.9B | – |
| P/E (trailing) | 8.5 | – |
| Dividend yield | 4.26% | 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 | HON | VYM |
|---|---|---|
| 2022 | +4.9% | -0.4% |
| 2023 | +0.0% | +6.6% |
| 2024 | +10.0% | +17.6% |
| 2025 | -6.4% | +15.4% |
| 2026 | +9.2% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.31% of VYM is HON itself, so the fund partly moves with the stock by construction.
Are HON and VYM good diversifiers for each other?
To a limited degree. At 0.56 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between HON and VYM?
Using weekly returns as of 2026-08-27: 0.56 over 3 years, with 0.47 over the last year and 0.63 over 5 years.
Is VYM a good diversifier for HON?
To a limited degree. At 0.56 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.56 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: HON correlations · VYM correlations
