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RDDT vs VUG: Correlation

Reddit (RDDT) and Vanguard Growth ETF (VUG) show a moderate relationship: their 3-year correlation of weekly returns is 0.53.

Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology

Correlation (3Y)
0.53
moderate
Correlation (1Y)
0.58
last 12 months
Correlation (5Y)
n/a
long-run
Ann. covariance
792.4
%² · weekly, annualized

How correlated are RDDT and VUG?

Across a 3-year window, the weekly returns of RDDT and VUG correlate at 0.53, moderate. The relationship has been stable: the 1-year correlation (0.58) sits close to the 3-year figure. Stretching to 5 years gives n/a, with an annualized covariance of 792.4 %².

Within RDDT's tracked universe of 40 assets, VUG comes in at #6 by 3-year correlation. The last year tells two different stories: VUG led by 43.3 percentage points, -27.1% for RDDT against +16.2% for VUG. Stability stands out here, with the rolling one-year correlation confined to 0.45 through 0.59. Note the risk asymmetry: RDDT runs 3.9 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.

+1.0+0.50-0.5-1.020232026-08-27
How the one-year correlation itself moved over the past three years.
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.

RDDT vs VUG: side by side

RDDT (Reddit)VUG (Vanguard Growth ETF)
1-year return-27.1%+16.2%
5-year returnn/a+78.4%
Volatility (ann.)75.2%19.4%
Beta vs S&P 5002.591.28
Max drawdown (3Y)-61.4%-22.8%
Market cap$29.6B
P/E (trailing)36.1
Dividend yield0.00%0.40%
Expense ratio0.03%
Assets under management$372.0B
Sector / categoryCommunication ServicesETF · US Style
Higher yield: VUG 0.40% vs 0.00%Smaller drawdown: VUG -22.8% vs -61.4%

VUG, Vanguard's Large Growth fund, carries $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% trailing dividend yield.

-49%0%+17%2025-09-052026-08-27
Twelve months of weekly closes, each series rebased to 100. RDDT · VUG

Year-by-year returns

YearRDDTVUG
2022-33.2%
2023+46.8%
2024+32.7%
2025+40.6%+19.4%
2026-33.0%+9.6%

Calendar-year price returns; the current year is year-to-date as of the data date above.

Fund exposure

A structural note: 0.07% of VUG is RDDT itself, so the fund partly moves with the stock by construction.

Are RDDT and VUG good diversifiers for each other?

Only partially. A correlation of 0.53 means RDDT and VUG 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 RDDT and VUG?

The RDDT/VUG correlation stands at 0.53 on a 3-year window (1 year: 0.58, 5 years: n/a), computed from weekly returns as of 2026-08-27.

Is VUG a good diversifier for RDDT?

Only partially. A correlation of 0.53 means RDDT and VUG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.

What does a correlation of 0.53 mean?

On the −1 to +1 scale, 0.53 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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RDDT vs VUG: 3-year weekly correlation 0.53RDDT vs VUG0.53

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Hubs: RDDT correlations · VUG correlations