VYM vs WAB: Correlation
How closely do Vanguard High Dividend Yield ETF (VYM) and Wabtec (WAB) trade together? Their weekly returns over three years give a correlation of 0.62, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VYM and WAB?
On 3 years of weekly data the VYM/WAB correlation comes out at 0.62, strong. The past 12 months show a weaker link (0.48) than the 3-year average (0.62). The 5-year figure is 0.67, and annualized covariance runs at 193.7 %².
By 3-year correlation, WAB places #62 of the 122 assets tracked against VYM. The last year tells two different stories: WAB led by 31.8 percentage points, +21.1% for VYM against +52.9% for WAB. Across three years, the rolling one-year figure varied moderately, from 0.47 to 0.81. Risk is not evenly split, since WAB carries 2.1 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.
VYM vs WAB: side by side
| VYM (Vanguard High Dividend Yield ETF) | WAB (Wabtec) | |
|---|---|---|
| 1-year return | +21.1% | +52.9% |
| 5-year return | +76.6% | +241.0% |
| Volatility (ann.) | 12.3% | 25.3% |
| Beta vs S&P 500 | 0.69 | 0.99 |
| Max drawdown (3Y) | -14.5% | -23.6% |
| Market cap | – | $50.2B |
| P/E (trailing) | – | 40.5 |
| Dividend yield | 2.24% | 0.37% |
| Expense ratio | 0.04% | – |
| Assets under management | $99.2B | – |
| Sector / category | ETF · Dividend | Industrials |
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 | VYM | WAB |
|---|---|---|
| 2022 | -0.4% | +9.1% |
| 2023 | +6.6% | +28.0% |
| 2024 | +17.6% | +50.1% |
| 2025 | +15.4% | +13.2% |
| 2026 | +15.9% | +39.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VYM and WAB good diversifiers for each other?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between VYM and WAB?
Using weekly returns as of 2026-08-27: 0.62 over 3 years, with 0.48 over the last year and 0.67 over 5 years.
Is WAB a good diversifier for VYM?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.62 mean?
A reading of 0.62 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vym-vs-wab.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vym-vs-wab/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VYM correlations · WAB correlations
