EFA vs TM: Correlation
Measured on weekly returns over the past three years, iShares MSCI EAFE ETF (EFA) and Toyota Motor Corporation (TM) carry a correlation of 0.58, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EFA and TM?
Across a 3-year window, the weekly returns of EFA and TM correlate at 0.58, moderate. The relationship has been stable: the 1-year correlation (0.59) sits close to the 3-year figure. Stretching to 5 years gives 0.59, with an annualized covariance of 251.7 %².
Within EFA's tracked universe of 109 assets, TM comes in at #69 by 3-year correlation. Correlation aside, the last 12 months split them widely, with EFA ahead by 24.3 points (+21.9% versus -2.4%). Risk is not evenly split, since TM carries 1.9 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.
EFA vs TM: side by side
| EFA (iShares MSCI EAFE ETF) | TM (Toyota Motor Corporation) | |
|---|---|---|
| 1-year return | +21.9% | -2.4% |
| 5-year return | +56.7% | +24.1% |
| Volatility (ann.) | 14.9% | 28.9% |
| Beta vs S&P 500 | 0.77 | 0.83 |
| Max drawdown (3Y) | -14.1% | -34.9% |
| Market cap | – | $227.4B |
| P/E (trailing) | – | 8.7 |
| Dividend yield | 3.19% | 49.52% |
| Expense ratio | 0.32% | – |
| Assets under management | $78.0B | – |
| Sector / category | ETF · International | US Listed |
On the fund side, EFA sits in the Foreign Large Blend category at iShares, with $78.0B under management, 666 holdings, a 0.32% expense ratio, a 3.19% trailing dividend yield.
Year-by-year returns
| Year | EFA | TM |
|---|---|---|
| 2022 | -14.4% | -24.4% |
| 2023 | +18.4% | +38.2% |
| 2024 | +3.5% | +8.9% |
| 2025 | +31.5% | +12.2% |
| 2026 | +14.3% | -10.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFA and TM good diversifiers for each other?
Only partially. A correlation of 0.58 means EFA and TM 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 EFA and TM?
As of 2026-08-27, the correlation of weekly returns between EFA and TM is 0.58 over 3 years, 0.59 over 1 year and 0.59 over 5 years.
Is TM a good diversifier for EFA?
Only partially. A correlation of 0.58 means EFA and TM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.58 mean?
On the −1 to +1 scale, 0.58 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/efa-vs-tm.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/efa-vs-tm/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EFA correlations · TM correlations
