Vanguard FTSE Correlations

VEU Etf  USD 60.47  0.26  0.43%   
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 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 All World 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 All World and NYA is 0.86 (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 All World 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 All World. 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 All World to buy it.

Moving together with Vanguard Etf

  0.62VEA Vanguard FTSE Developed Aggressive PushPairCorr
  0.62IEFA iShares Core MSCIPairCorr
  0.98EFA iShares MSCI EAFE Aggressive PushPairCorr
  0.65IXUS iShares Core MSCIPairCorr
  0.98SPDW SPDR SP WorldPairCorr
  0.62IDEV iShares Core MSCIPairCorr
  0.61ESGD iShares ESG AwarePairCorr
  0.97DFAX Dimensional WorldPairCorr
  0.82IQLT iShares MSCI IntlPairCorr
  0.81GREI Goldman Sachs FuturePairCorr
  0.84MPAY Akros Monthly PayoutPairCorr
  0.94BUFF Innovator LadderedPairCorr

Moving against Vanguard Etf

  0.46BITI ProShares TrustPairCorr

Related Correlations Analysis

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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.

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Already Invested in Vanguard FTSE All World?

The danger of trading Vanguard FTSE All World 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 Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Vanguard FTSE All 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 All is a strong investment it is important to analyze Vanguard FTSE's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Vanguard FTSE's future performance. For an informed investment choice regarding Vanguard Etf, refer to the following important reports:
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 tightly coupled with the direction of predictive economic indicators such as signals in income.
Note that the Vanguard FTSE All 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
The market value of Vanguard FTSE All 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.