NUE vs VYM: Correlation
Measured on weekly returns over the past three years, Nucor (NUE) and Vanguard High Dividend Yield ETF (VYM) carry a correlation of 0.57, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NUE and VYM?
Over the past 3 years, NUE and VYM moved with a correlation of 0.57, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.45 versus 0.57 over 3 years. Over 5 years the correlation is 0.57, and the annualized covariance of weekly returns is 233.3 %².
Within NUE's tracked universe of 34 assets, VYM comes in at #13 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months NUE outperformed by 49.0 percentage points (+70.1% for NUE against +21.1% for VYM). The rolling one-year correlation moved between 0.29 and 0.76 over the past three years, a moderate range. Risk is not evenly split, since NUE carries 2.7 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.
NUE vs VYM: side by side
| NUE (Nucor) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +70.1% | +21.1% |
| 5-year return | +124.6% | +76.6% |
| Volatility (ann.) | 33.3% | 12.3% |
| Beta vs S&P 500 | 1.08 | 0.69 |
| Max drawdown (3Y) | -47.8% | -14.5% |
| Market cap | $57.3B | – |
| P/E (trailing) | 20.1 | – |
| Dividend yield | 0.88% | 2.24% |
| Expense ratio | – | 0.04% |
| Assets under management | – | $99.2B |
| Sector / category | Materials | 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 | NUE | VYM |
|---|---|---|
| 2022 | +17.4% | -0.4% |
| 2023 | +33.8% | +6.6% |
| 2024 | -32.0% | +17.6% |
| 2025 | +42.0% | +15.4% |
| 2026 | +55.6% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that VYM holds NUE at a 0.23% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are NUE and VYM good diversifiers for each other?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between NUE and VYM?
The NUE/VYM correlation stands at 0.57 on a 3-year window (1 year: 0.45, 5 years: 0.57), computed from weekly returns as of 2026-08-27.
Is VYM a good diversifier for NUE?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.57 mean?
On the −1 to +1 scale, 0.57 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: NUE correlations · VYM correlations
