DEO vs IEFA: Correlation
How closely do Diageo plc (DEO) and iShares Core MSCI EAFE ETF (IEFA) trade together? Their weekly returns over three years give a correlation of 0.55, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DEO and IEFA?
Across a 3-year window, the weekly returns of DEO and IEFA correlate at 0.55, moderate. Little has changed lately, as the 1-year reading of 0.55 lands near the 3-year figure. Stretching to 5 years gives 0.58, with an annualized covariance of 219.3 %².
In DEO's tracked universe of 13 assets, IEFA sits right near the top at #3. Their recent paths diverged sharply: over the last 12 months IEFA outperformed by 36.6 percentage points (-14.8% for DEO against +21.8% for IEFA). One caveat on sizing: DEO is 1.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
DEO vs IEFA: side by side
| DEO (Diageo plc) | IEFA (iShares Core MSCI EAFE ETF) | |
|---|---|---|
| 1-year return | -14.8% | +21.8% |
| 5-year return | -45.7% | +54.5% |
| Volatility (ann.) | 26.8% | 15.0% |
| Beta vs S&P 500 | 0.68 | 0.77 |
| Max drawdown (3Y) | -54.4% | -13.8% |
| Market cap | $51.2B | – |
| P/E (trailing) | 29.5 | – |
| Dividend yield | 0.53% | 3.35% |
| Expense ratio | – | 0.07% |
| Assets under management | – | $190.1B |
| Sector / category | US Listed | ETF · International |
IEFA, iShares's Foreign Large Blend fund, carries $190.1B under management, 1620 holdings, a 0.07% expense ratio, a 3.35% trailing dividend yield.
Year-by-year returns
| Year | DEO | IEFA |
|---|---|---|
| 2022 | -17.4% | -15.2% |
| 2023 | -16.3% | +18.0% |
| 2024 | -10.1% | +3.3% |
| 2025 | -29.3% | +32.1% |
| 2026 | +7.8% | +14.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DEO and IEFA good diversifiers for each other?
Only partially. A correlation of 0.55 means DEO and IEFA share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between DEO and IEFA?
As of 2026-08-27, the correlation of weekly returns between DEO and IEFA is 0.55 over 3 years, 0.55 over 1 year and 0.58 over 5 years.
Is IEFA a good diversifier for DEO?
Only partially. A correlation of 0.55 means DEO and IEFA share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.55 mean?
A reading of 0.55 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/deo-vs-iefa.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/deo-vs-iefa/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: DEO correlations · IEFA correlations
