NSC vs VYM: Correlation
How closely do Norfolk Southern (NSC) and Vanguard High Dividend Yield ETF (VYM) trade together? Their weekly returns over three years give a correlation of 0.62, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NSC and VYM?
On 3 years of weekly data the NSC/VYM correlation comes out at 0.62, strong. The link has loosened recently: the 1-year correlation (0.40) runs below the 3-year figure (0.62). The 5-year figure is 0.62, and annualized covariance runs at 168.7 %².
By 3-year correlation, VYM places #8 of the 32 assets tracked against NSC. On 12-month performance NSC holds a 8.9-point edge, +30.0% against +21.1%. On a rolling one-year basis the correlation drifted between 0.42 and 0.79, a moderate band. Risk is not evenly split, since NSC carries 1.8 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.
NSC vs VYM: side by side
| NSC (Norfolk Southern) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +30.0% | +21.1% |
| 5-year return | +49.6% | +76.6% |
| Volatility (ann.) | 22.0% | 12.3% |
| Beta vs S&P 500 | 0.69 | 0.69 |
| Max drawdown (3Y) | -25.1% | -14.5% |
| Market cap | $78.1B | – |
| P/E (trailing) | 30.1 | – |
| Dividend yield | 1.53% | 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 | NSC | VYM |
|---|---|---|
| 2022 | -15.6% | -0.4% |
| 2023 | -1.6% | +6.6% |
| 2024 | +1.6% | +17.6% |
| 2025 | +25.6% | +15.4% |
| 2026 | +22.0% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
NSC represents 0.31% of VYM's portfolio, so part of any move in VYM is NSC itself, and the correlation between them is partly mechanical.
Are NSC and VYM good diversifiers for each other?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between NSC and VYM?
The NSC/VYM correlation stands at 0.62 on a 3-year window (1 year: 0.40, 5 years: 0.62), computed from weekly returns as of 2026-08-27.
Is VYM a good diversifier for NSC?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.62 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: NSC correlations · VYM correlations
