Vanguard FTSE Correlations

Etfs . USA . 
Etf . Vanguard FTSE Europe
VGK Etf  USD 71.78  0.64  0.88%   
The current 90-days correlation between Vanguard FTSE Europe and Vanguard FTSE All World is 0.92 (i.e., Almost no diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Vanguard FTSE moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Vanguard FTSE Europe moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

Vanguard FTSE Correlation With Market

VanguardDowDiversified AwayVanguardDowDiversified Away100%

Significant diversification

The correlation between Vanguard FTSE Europe and DJI is 0.04 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard FTSE Europe 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 Europe. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in price.

Moving together with Vanguard Etf

  0.79EZU iShares MSCI EurozonePairCorr
  0.81BBEU JPMorgan BetaBuildersPairCorr
  0.81IEUR iShares Core MSCIPairCorr
  0.78FEZ SPDR EURO STOXXPairCorr
  1.0IEV iShares Europe ETFPairCorr
  0.72HEDJ WisdomTree Europe HedgedPairCorr
  0.72DBEU Xtrackers MSCI EuropePairCorr
  0.73HEZU iShares Currency HedgedPairCorr
  0.79FEP First Trust EuropePairCorr
  0.72IGA Voya Global AdvantagePairCorr
  0.72GDXU MicroSectors Gold MinersPairCorr
  0.8VZ Verizon CommunicationsPairCorr
  0.77JNJ Johnson JohnsonPairCorr
  0.77T ATT Inc Earnings Call TomorrowPairCorr
  0.64IBM International BusinessPairCorr
  0.66PG Procter GamblePairCorr
  0.76KO Coca ColaPairCorr

Moving against Vanguard Etf

  0.62MAGS Roundhill MagnificentPairCorr
  0.59SEMI Columbia SeligmanPairCorr
  0.39PXMV Invesco SP MidCapPairCorr
  0.49HPQ HP IncPairCorr
  0.49CAT CaterpillarPairCorr
  0.45MRK Merck CompanyPairCorr
  0.31BA BoeingPairCorr

Related Correlations Analysis

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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
+ 0.96
VPL
VWO
+ 0.9
VPL
VEA
+ 0.85
VWO
VEU
+ 0.79
VWO
VEA
+ 0.78
VEU
VEU
+ 0.76
VPL
  
High negative correlations   
VB
- 0.47
VEA
VB
- 0.4
VEU
VB
- 0.38
VWO
VB
- 0.31
VPL

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.

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