Vanguard FTSE Correlations

VEA Etf  USD 48.77  0.51  1.06%   
The correlation of Vanguard FTSE is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. 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 Developed moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Very poor diversification

The correlation between Vanguard FTSE Developed and NYA is 0.8 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard FTSE Developed and NYA 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 Developed. Also, note that the market value of any ETF could be tightly coupled with the direction of predictive economic indicators such as signals in income.
  
The ability to find closely correlated positions to Vanguard FTSE could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Vanguard FTSE when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Vanguard FTSE - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Vanguard FTSE Developed to buy it.

Moving together with Vanguard Etf

  0.9IEFA IShares Core MSCI Low VolatilityPairCorr
  0.97VEU Vanguard FTSE All-WorldPairCorr
  0.99EFA IShares MSCI EAFE Aggressive PushPairCorr
  0.96IXUS IShares Core MSCIPairCorr
  1.0SPDW SPDR SP WorldPairCorr
  0.99IDEV IShares Core MSCIPairCorr
  0.98ESGD IShares ESG AwarePairCorr
  0.98DFAX Dimensional WorldPairCorr
  0.97IQLT IShares MSCI IntlPairCorr
  0.93MDY SPDR SP MIDCAPPairCorr
  0.91SLYG SPDR SP 600PairCorr
  0.88KRMA Global X ConsciousPairCorr
  0.84SPY SPDR SP 500 Aggressive PushPairCorr
  0.84IVV IShares Core SPPairCorr
  0.81SLYV SPDR SP 600PairCorr
  0.73IGV IShares Expanded TecPairCorr
  0.72IXN IShares Global TechPairCorr

Related Correlations Analysis

Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

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   
KNGABHYX
WQTEFABHYX
KNGWQTEF
ABHYXMSTSX
KNGMSTSX
SVIIABHYX
  
High negative correlations   
SVIIBA
SVIIVIASP
WQTEFVIASP
VIASPABHYX
KNGVIASP
WQTEFBA

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.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Vanguard FTSE without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

Did you try this?

Run Portfolio Dashboard Now

   

Portfolio Dashboard

Portfolio dashboard that provides centralized access to all your investments
All  Next Launch Module

Already Invested in Vanguard FTSE Developed?

The danger of trading Vanguard FTSE Developed is mainly related to its market volatility and ETF specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Vanguard FTSE is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Vanguard FTSE. The Shape ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Vanguard FTSE Developed is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Vanguard FTSE Developed offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Vanguard FTSE's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Vanguard Ftse Developed Etf. Outlined below are crucial reports that will aid in making a well-informed decision on Vanguard Ftse Developed Etf:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Vanguard FTSE Developed. Also, note that the market value of any ETF could be tightly coupled with the direction of predictive economic indicators such as signals in income.
Note that the Vanguard FTSE Developed information on this page should be used as a complementary analysis to other Vanguard FTSE's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

Complementary Tools for Vanguard Etf analysis

When running Vanguard FTSE's price analysis, check to measure Vanguard FTSE's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Vanguard FTSE is operating at the current time. Most of Vanguard FTSE's value examination focuses on studying past and present price action to predict the probability of Vanguard FTSE's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Vanguard FTSE's price. Additionally, you may evaluate how the addition of Vanguard FTSE to your portfolios can decrease your overall portfolio volatility.
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
The market value of Vanguard FTSE Developed is measured differently than its book value, which is the value of Vanguard that is recorded on the company's balance sheet. Investors also form their own opinion of Vanguard FTSE's value that differs from its market value or its book value, called intrinsic value, which is Vanguard FTSE's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Vanguard FTSE's market value can be influenced by many factors that don't directly affect Vanguard FTSE's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Vanguard FTSE's value and its price as these two are different measures arrived at by different means. Investors typically determine if Vanguard FTSE is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vanguard FTSE's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.