DEO vs VEA: Correlation
Measured on weekly returns over the past three years, Diageo plc (DEO) and Vanguard FTSE Developed Markets ETF (VEA) carry a correlation of 0.54, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DEO and VEA?
On 3 years of weekly data the DEO/VEA correlation comes out at 0.54, moderate. Recent behaviour matches the longer record: 0.51 over 1 year against 0.54 over 3. The 5-year figure is 0.56, and annualized covariance runs at 218.2 %².
Within DEO's tracked universe of 13 assets, VEA comes in at #4 by 3-year correlation. The last year tells two different stories: VEA led by 43.3 percentage points, -14.8% for DEO against +28.5% for VEA. Risk is not evenly split, since DEO carries 1.8 times the volatility of the other side.
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 VEA: side by side
| DEO (Diageo plc) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | -14.8% | +28.5% |
| 5-year return | -45.7% | +63.5% |
| Volatility (ann.) | 26.8% | 15.1% |
| Beta vs S&P 500 | 0.68 | 0.79 |
| Max drawdown (3Y) | -54.4% | -13.5% |
| Market cap | $51.2B | – |
| P/E (trailing) | 29.5 | – |
| Dividend yield | 0.53% | 2.56% |
| Expense ratio | – | 0.03% |
| Assets under management | – | $314.9B |
| Sector / category | US Listed | ETF · International |
VEA is a Foreign Large Blend fund from Vanguard: $314.9B under management, 3769 holdings, a 0.03% expense ratio, a 2.56% trailing dividend yield.
Year-by-year returns
| Year | DEO | VEA |
|---|---|---|
| 2022 | -17.4% | -15.3% |
| 2023 | -16.3% | +17.9% |
| 2024 | -10.1% | +3.1% |
| 2025 | -29.3% | +35.2% |
| 2026 | +7.8% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DEO and VEA good diversifiers for each other?
Only partially. A correlation of 0.54 means DEO and VEA 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 VEA?
Using weekly returns as of 2026-08-27: 0.54 over 3 years, with 0.51 over the last year and 0.56 over 5 years.
Is VEA a good diversifier for DEO?
Only partially. A correlation of 0.54 means DEO and VEA share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.54 mean?
On the −1 to +1 scale, 0.54 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/deo-vs-vea.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/deo-vs-vea/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: DEO correlations · VEA correlations
