TXT vs VYM: Correlation
How closely do Textron (TXT) and Vanguard High Dividend Yield ETF (VYM) trade together? Their weekly returns over three years give a correlation of 0.67, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TXT and VYM?
Over the past 3 years, TXT and VYM moved with a correlation of 0.67, which is strong. The link has loosened recently: the 1-year correlation (0.53) runs below the 3-year figure (0.67). Over 5 years the correlation is 0.68, and the annualized covariance of weekly returns is 208.0 %².
Among the 39 assets we track against TXT, VYM ranks #5 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months VYM outperformed by 20.4 percentage points (+0.7% for TXT against +21.1% for VYM). On a rolling one-year basis the correlation drifted between 0.40 and 0.89, a moderate band. Note the risk asymmetry: TXT runs 2.1 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
TXT vs VYM: side by side
| TXT (Textron) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +0.7% | +21.1% |
| 5-year return | +15.1% | +76.6% |
| Volatility (ann.) | 25.4% | 12.3% |
| Beta vs S&P 500 | 0.89 | 0.69 |
| Max drawdown (3Y) | -37.3% | -14.5% |
| Market cap | $14.2B | – |
| P/E (trailing) | 15.7 | – |
| Dividend yield | 0.10% | 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 | TXT | VYM |
|---|---|---|
| 2022 | -8.2% | -0.4% |
| 2023 | +13.7% | +6.6% |
| 2024 | -4.8% | +17.6% |
| 2025 | +14.1% | +15.4% |
| 2026 | -5.5% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TXT and VYM good diversifiers for each other?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between TXT and VYM?
The TXT/VYM correlation stands at 0.67 on a 3-year window (1 year: 0.53, 5 years: 0.68), computed from weekly returns as of 2026-08-27.
Is VYM a good diversifier for TXT?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.67 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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Hubs: TXT correlations · VYM correlations
