Vanguard Fund Correlation Tool

Given today’s financial climate, diversification is the key.  As someone who holds several mutual funds, I look for Morningstar rating, past performance, risk measures (alpha, beta, R-squared, standard deviation, sharp ratio), etc.  But, if you have some Vanguard Mutual Funds, you may be interested in this Vanguard Fund Correlation Tool (it’s in the lower right column).  It allows you to determine how correlated one Vanguard Mutual Fund is to another Vanguard Mutual Fund.  For instance, Vanguard MidCap Growth Index (VMGIX) is very highly (0.97) correlated with Vanguard SmallCap Growth Index (VISGX).  So, if you’re thinking of investing some money into different Vanguard Mutual Funds (e.g. Roth IRAs) and want to diversify (i.e. achieve low correlation between funds), check out the correlation tool.  I wish there was a tool for all the mutual funds, not just Vanguard funds, and am thinking of writing the tool myself…

Shrinking Market Caps of Banks in the Last 18 Months

Oh my!  How much has the banking industry changed in the last eighteen months!

Heartland Payment Systems Breach Leaves 100 Million Credit and Debit Accounts Vulnerable

Heartland Payment Systems, which processes credit and debit card (e.g. Visa, Mastercard, American Express, and Discover, prepaid) transaction payments for 250,000 businesses nationwide, announced on Tuesday that there was a security breach  last year due to a malware, leaving 100 million accounts vulnerable.  Only the credit card number and/or cardholders’ names were compromised.  For more information from the company directly, they have set up a website.