UNP vs VYM: Correlation
Measured on weekly returns over the past three years, Union Pacific Corporation (UNP) and Vanguard High Dividend Yield ETF (VYM) carry a correlation of 0.61, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are UNP and VYM?
On 3 years of weekly data the UNP/VYM correlation comes out at 0.61, strong. The past 12 months show a weaker link (0.33) than the 3-year average (0.61). The 5-year figure is 0.61, and annualized covariance runs at 155.0 %².
Among the 33 assets we track against UNP, VYM ranks #9 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months UNP outperformed by 21.3 percentage points (+42.4% for UNP against +21.1% for VYM). On a rolling one-year basis the correlation drifted between 0.37 and 0.76, a moderate band. Note the risk asymmetry: UNP runs 1.7 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.
UNP vs VYM: side by side
| UNP (Union Pacific Corporation) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | +42.4% | +21.1% |
| 5-year return | +56.5% | +76.6% |
| Volatility (ann.) | 20.6% | 12.3% |
| Beta vs S&P 500 | 0.56 | 0.69 |
| Max drawdown (3Y) | -17.8% | -14.5% |
| Market cap | $182.8B | – |
| P/E (trailing) | 25.1 | – |
| Dividend yield | 1.78% | 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 | UNP | VYM |
|---|---|---|
| 2022 | -15.9% | -0.4% |
| 2023 | +21.6% | +6.6% |
| 2024 | -5.1% | +17.6% |
| 2025 | +3.9% | +15.4% |
| 2026 | +34.4% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
UNP represents 0.71% of VYM's portfolio, so part of any move in VYM is UNP itself, and the correlation between them is partly mechanical.
Are UNP and VYM good diversifiers for each other?
Only partially. A correlation of 0.61 means UNP and VYM 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 UNP and VYM?
The UNP/VYM correlation stands at 0.61 on a 3-year window (1 year: 0.33, 5 years: 0.61), computed from weekly returns as of 2026-08-27.
Is VYM a good diversifier for UNP?
Only partially. A correlation of 0.61 means UNP and VYM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.61 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: UNP correlations · VYM correlations
