HSBC vs VEA: Correlation
How closely do HSBC Holdings, plc. (HSBC) and Vanguard FTSE Developed Markets ETF (VEA) trade together? Their weekly returns over three years give a correlation of 0.63, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HSBC and VEA?
Over the past 3 years, HSBC and VEA moved with a correlation of 0.63, which is strong. Recent behaviour matches the longer record: 0.64 over 1 year against 0.63 over 3. Over 5 years the correlation is 0.62, and the annualized covariance of weekly returns is 211.2 %².
By 3-year correlation, VEA places #5 of the 13 assets tracked against HSBC. Correlation aside, the last 12 months split them widely, with HSBC ahead by 38.1 points (+66.6% versus +28.5%).
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 VEA: side by side
| HSBC (HSBC Holdings, plc.) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | +66.6% | +28.5% |
| 5-year return | +420.9% | +63.5% |
| Volatility (ann.) | 22.1% | 15.1% |
| Beta vs S&P 500 | 0.68 | 0.79 |
| Max drawdown (3Y) | -21.8% | -13.5% |
| Market cap | $352.5B | – |
| P/E (trailing) | 14.8 | – |
| Dividend yield | 0.72% | 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 | HSBC | VEA |
|---|---|---|
| 2022 | +7.8% | -15.3% |
| 2023 | +39.4% | +17.9% |
| 2024 | +34.5% | +3.1% |
| 2025 | +67.9% | +35.2% |
| 2026 | +35.8% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HSBC and VEA good diversifiers for each other?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between HSBC and VEA?
Using weekly returns as of 2026-08-27: 0.63 over 3 years, with 0.64 over the last year and 0.62 over 5 years.
Is VEA a good diversifier for HSBC?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.63 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: HSBC correlations · VEA correlations
