RAIL vs VYM: Correlation
Freightcar America, Inc. (RAIL) and Vanguard High Dividend Yield ETF (VYM) show a moderate relationship: their 3-year correlation of weekly returns is 0.40.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RAIL and VYM?
Over the past 3 years, RAIL and VYM moved with a correlation of 0.40, which is moderate. Little has changed lately, as the 1-year reading of 0.40 lands near the 3-year figure. Over 5 years the correlation is 0.38, and the annualized covariance of weekly returns is 372.1 %².
Among the 11 assets we track against RAIL, VYM ranks #5 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months VYM outperformed by 37.2 percentage points (-16.1% for RAIL against +21.1% for VYM). One caveat on sizing: RAIL is 6.1 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.
RAIL vs VYM: side by side
| RAIL (Freightcar America, Inc.) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | -16.1% | +21.1% |
| 5-year return | +36.6% | +76.6% |
| Volatility (ann.) | 75.3% | 12.3% |
| Beta vs S&P 500 | 1.84 | 0.69 |
| Max drawdown (3Y) | -71.7% | -14.5% |
| Market cap | $0.2B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 2.24% |
| Expense ratio | – | 0.04% |
| Assets under management | – | $99.2B |
| Sector / category | US Listed | 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 | RAIL | VYM |
|---|---|---|
| 2022 | -13.3% | -0.4% |
| 2023 | -15.6% | +6.6% |
| 2024 | +231.9% | +17.6% |
| 2025 | +23.5% | +15.4% |
| 2026 | -34.6% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RAIL and VYM good diversifiers for each other?
Reasonably. At 0.40, RAIL and VYM keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between RAIL and VYM?
The RAIL/VYM correlation stands at 0.40 on a 3-year window (1 year: 0.40, 5 years: 0.38), computed from weekly returns as of 2026-08-27.
Is VYM a good diversifier for RAIL?
Reasonably. At 0.40, RAIL and VYM keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.40 mean?
On the −1 to +1 scale, 0.40 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: RAIL correlations · VYM correlations
