HSBC vs IEFA: Correlation
How closely do HSBC Holdings, plc. (HSBC) and iShares Core MSCI EAFE ETF (IEFA) trade together? Their weekly returns over three years give a correlation of 0.65, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HSBC and IEFA?
Across a 3-year window, the weekly returns of HSBC and IEFA correlate at 0.65, strong. Little has changed lately, as the 1-year reading of 0.68 lands near the 3-year figure. Stretching to 5 years gives 0.63, with an annualized covariance of 213.2 %².
IEFA is one of the assets that tracks HSBC most closely: it ranks #2 out of the 13 assets we track against HSBC. Correlation aside, the last 12 months split them widely, with HSBC ahead by 44.8 points (+66.6% versus +21.8%).
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.
HSBC vs IEFA: side by side
| HSBC (HSBC Holdings, plc.) | IEFA (iShares Core MSCI EAFE ETF) | |
|---|---|---|
| 1-year return | +66.6% | +21.8% |
| 5-year return | +420.9% | +54.5% |
| Volatility (ann.) | 22.1% | 15.0% |
| Beta vs S&P 500 | 0.68 | 0.77 |
| Max drawdown (3Y) | -21.8% | -13.8% |
| Market cap | $352.5B | – |
| P/E (trailing) | 14.8 | – |
| Dividend yield | 0.72% | 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 | HSBC | IEFA |
|---|---|---|
| 2022 | +7.8% | -15.2% |
| 2023 | +39.4% | +18.0% |
| 2024 | +34.5% | +3.3% |
| 2025 | +67.9% | +32.1% |
| 2026 | +35.8% | +14.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HSBC and IEFA good diversifiers for each other?
Only partially. A correlation of 0.65 means HSBC 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 HSBC and IEFA?
The HSBC/IEFA correlation stands at 0.65 on a 3-year window (1 year: 0.68, 5 years: 0.63), computed from weekly returns as of 2026-08-27.
Is IEFA a good diversifier for HSBC?
Only partially. A correlation of 0.65 means HSBC 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 0.65 mean?
On the −1 to +1 scale, 0.65 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/hsbc-vs-iefa.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/hsbc-vs-iefa/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: HSBC correlations · IEFA correlations
