Vanguard FTSE Correlations

VEU Etf

USD 59.03 0.09 0.15%

The current 90-days correlation between Vanguard FTSE All and Vanguard FTSE Emerging is 0.89 (i.e., Very poor diversification). The correlation of Vanguard FTSE is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Vanguard FTSE Correlation With Market

Very weak diversification

The correlation between Vanguard FTSE All World and DJI is 0.42 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard FTSE All World and DJI in the same portfolio, assuming nothing else is changed.

Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Vanguard FTSE All World. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in income.

Moving together with Vanguard Etf

0.89	VEA	Vanguard FTSE Developed	Pair Corr
0.87	IEFA	iShares Core MSCI	Pair Corr
0.86	EFA	iShares MSCI EAFE	Pair Corr
1.0	IXUS	iShares Core MSCI	Pair Corr
0.91	SPDW	SPDR SP World	Pair Corr
0.91	IDEV	iShares Core MSCI	Pair Corr
0.86	ESGD	iShares ESG Aware	Pair Corr
0.81	JIRE	JP Morgan Exchange	Pair Corr
1.0	DFAX	Dimensional World	Pair Corr
0.61	PFFL	ETRACS 2xMonthly Pay	Pair Corr
0.78	DD	Dupont De Nemours Fiscal Year End 4th of February 2025	Pair Corr

Moving against Vanguard Etf

0.39

DIS

Walt Disney Aggressive Push

Pair Corr

Related Correlations Analysis

	VWO	VB	BND	VSS	VEA
VWO		0.45	-0.24	0.6	0.26	VWO
VB	0.45		-0.69	-0.17	-0.45	VB
BND	-0.24	-0.69		0.51	0.72	BND
VSS	0.6	-0.17	0.51		0.92	VSS
VEA	0.26	-0.45	0.72	0.92		VEA
	VWO	VB	BND	VSS	VEA

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

VEA	+ 0.92	VSS
VEA	+ 0.72	BND
VSS	+ 0.6	VWO
VSS	+ 0.51	BND
VB	+ 0.45	VWO
VEA	+ 0.26	VWO

High negative correlations

BND	- 0.69	VB
VEA	- 0.45	VB
BND	- 0.24	VWO
VSS	- 0.17	VB

Vanguard FTSE Constituents Risk-Adjusted Indicators

There is a big difference between Vanguard Etf performing well and Vanguard FTSE ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Vanguard FTSE's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
VWO	0.83	(0.01)	(0.05)	0.07	1.01	(0.92)	2.10	(1.70)	6.41
VB	0.75	0.04	0.07	0.12	0.74	(0.79)	1.69	(1.21)	5.31
BND	0.22	(0.03)	0.00	0.58	0.00	0.00	0.42	(0.60)	1.35
VSS	0.63	(0.09)	0.00	(0.09)	0.00	0.00	1.71	(1.51)	4.15
VEA	0.65	(0.11)	0.00	(0.13)	0.00	0.00	1.52	(1.42)	3.86

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