EWJ vs HMC: Correlation
How closely do iShares MSCI Japan ETF (EWJ) and Honda Motor Company, Ltd. (HMC) trade together? Their weekly returns over three years give a correlation of 0.54, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EWJ and HMC?
Over the past 3 years, EWJ and HMC moved with a correlation of 0.54, which is moderate. The past 12 months show a weaker link (0.40) than the 3-year average (0.54). Over 5 years the correlation is 0.57, and the annualized covariance of weekly returns is 299.0 %².
Among the 70 assets we track against EWJ, HMC ranks #44 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months EWJ outperformed by 34.6 percentage points (+27.1% for EWJ against -7.5% for HMC).
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.
EWJ vs HMC: side by side
| EWJ (iShares MSCI Japan ETF) | HMC (Honda Motor Company, Ltd.) | |
|---|---|---|
| 1-year return | +27.1% | -7.5% |
| 5-year return | +58.6% | +21.7% |
| Volatility (ann.) | 19.6% | 28.1% |
| Beta vs S&P 500 | 0.94 | 0.61 |
| Max drawdown (3Y) | -14.7% | -35.2% |
| Market cap | – | $40.7B |
| P/E (trailing) | – | – |
| Dividend yield | 3.86% | 222.86% |
| Expense ratio | 0.49% | – |
| Assets under management | $21.8B | – |
| Sector / category | ETF · International | US Listed |
On the fund side, EWJ sits in the Japan Stock category at iShares, with $21.8B under management, 168 holdings, a 0.49% expense ratio, a 3.86% trailing dividend yield.
Year-by-year returns
| Year | EWJ | HMC |
|---|---|---|
| 2022 | -17.7% | -16.6% |
| 2023 | +20.3% | +39.9% |
| 2024 | +7.0% | -3.8% |
| 2025 | +25.8% | +5.9% |
| 2026 | +19.3% | +6.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and HMC good diversifiers for each other?
Only partially. A correlation of 0.54 means EWJ and HMC 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 EWJ and HMC?
As of 2026-08-27, the correlation of weekly returns between EWJ and HMC is 0.54 over 3 years, 0.40 over 1 year and 0.57 over 5 years.
Is HMC a good diversifier for EWJ?
Only partially. A correlation of 0.54 means EWJ and HMC 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.
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Related comparisons
Hubs: EWJ correlations · HMC correlations
