EFA vs HMC: Correlation
Measured on weekly returns over the past three years, iShares MSCI EAFE ETF (EFA) and Honda Motor Company, Ltd. (HMC) carry a correlation of 0.52, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EFA and HMC?
Over the past 3 years, EFA and HMC moved with a correlation of 0.52, which is moderate. Little has changed lately, as the 1-year reading of 0.44 lands near the 3-year figure. Over 5 years the correlation is 0.53, and the annualized covariance of weekly returns is 218.1 %².
By 3-year correlation, HMC places #84 of the 109 assets tracked against EFA. Their recent paths diverged sharply: over the last 12 months EFA outperformed by 29.4 percentage points (+21.9% for EFA against -7.5% for HMC). One caveat on sizing: HMC is 1.9 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.
EFA vs HMC: side by side
| EFA (iShares MSCI EAFE ETF) | HMC (Honda Motor Company, Ltd.) | |
|---|---|---|
| 1-year return | +21.9% | -7.5% |
| 5-year return | +56.7% | +21.7% |
| Volatility (ann.) | 14.9% | 28.1% |
| Beta vs S&P 500 | 0.77 | 0.61 |
| Max drawdown (3Y) | -14.1% | -35.2% |
| Market cap | – | $40.7B |
| P/E (trailing) | – | – |
| Dividend yield | 3.19% | 222.86% |
| Expense ratio | 0.32% | – |
| Assets under management | $78.0B | – |
| Sector / category | ETF · International | US Listed |
EFA is a Foreign Large Blend fund from iShares: $78.0B under management, 666 holdings, a 0.32% expense ratio, a 3.19% trailing dividend yield.
Year-by-year returns
| Year | EFA | HMC |
|---|---|---|
| 2022 | -14.4% | -16.6% |
| 2023 | +18.4% | +39.9% |
| 2024 | +3.5% | -3.8% |
| 2025 | +31.5% | +5.9% |
| 2026 | +14.3% | +6.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFA and HMC good diversifiers for each other?
To a limited degree. At 0.52 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between EFA and HMC?
Using weekly returns as of 2026-08-27: 0.52 over 3 years, with 0.44 over the last year and 0.53 over 5 years.
Is HMC a good diversifier for EFA?
To a limited degree. At 0.52 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.52 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: EFA correlations · HMC correlations
