IR vs VYM: Correlation
Measured on weekly returns over the past three years, Ingersoll Rand (IR) and Vanguard High Dividend Yield ETF (VYM) carry a correlation of 0.67, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IR and VYM?
Over the past 3 years, IR and VYM moved with a correlation of 0.67, which is strong. Little has changed lately, as the 1-year reading of 0.59 lands near the 3-year figure. Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 247.2 %².
By 3-year correlation, VYM places #16 of the 61 assets tracked against IR. Their recent paths diverged sharply: over the last 12 months VYM outperformed by 23.1 percentage points (-2.0% for IR against +21.1% for VYM). The rolling one-year correlation moved between 0.47 and 0.83 over the past three years, a moderate range. Risk is not evenly split, since IR carries 2.4 times the volatility of the other side.
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.
IR vs VYM: side by side
| IR (Ingersoll Rand) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | -2.0% | +21.1% |
| 5-year return | +49.2% | +76.6% |
| Volatility (ann.) | 29.8% | 12.3% |
| Beta vs S&P 500 | 1.17 | 0.69 |
| Max drawdown (3Y) | -36.6% | -14.5% |
| Market cap | $30.6B | – |
| P/E (trailing) | 32.6 | – |
| Dividend yield | 0.15% | 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 | IR | VYM |
|---|---|---|
| 2022 | -15.4% | -0.4% |
| 2023 | +48.2% | +6.6% |
| 2024 | +17.1% | +17.6% |
| 2025 | -12.3% | +15.4% |
| 2026 | -0.2% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IR and VYM good diversifiers for each other?
Only partially. A correlation of 0.67 means IR and VYM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between IR and VYM?
As of 2026-08-27, the correlation of weekly returns between IR and VYM is 0.67 over 3 years, 0.59 over 1 year and 0.65 over 5 years.
Is VYM a good diversifier for IR?
Only partially. A correlation of 0.67 means IR and VYM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.67 mean?
A reading of 0.67 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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