EWJ vs TM: Correlation
Measured on weekly returns over the past three years, iShares MSCI Japan ETF (EWJ) and Toyota Motor Corporation (TM) carry a correlation of 0.68, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EWJ and TM?
On 3 years of weekly data the EWJ/TM correlation comes out at 0.68, strong. The past 12 months show a weaker link (0.55) than the 3-year average (0.68). The 5-year figure is 0.69, and annualized covariance runs at 387.0 %².
By 3-year correlation, TM places #21 of the 70 assets tracked against EWJ. The last year tells two different stories: EWJ led by 29.5 percentage points, +27.1% for EWJ against -2.4% for TM.
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 TM: side by side
| EWJ (iShares MSCI Japan ETF) | TM (Toyota Motor Corporation) | |
|---|---|---|
| 1-year return | +27.1% | -2.4% |
| 5-year return | +58.6% | +24.1% |
| Volatility (ann.) | 19.6% | 28.9% |
| Beta vs S&P 500 | 0.94 | 0.83 |
| Max drawdown (3Y) | -14.7% | -34.9% |
| Market cap | – | $227.4B |
| P/E (trailing) | – | 8.7 |
| Dividend yield | 3.86% | 49.52% |
| Expense ratio | 0.49% | – |
| Assets under management | $21.8B | – |
| Sector / category | ETF · International | US Listed |
EWJ, iShares's Japan Stock fund, carries $21.8B under management, 168 holdings, a 0.49% expense ratio, a 3.86% trailing dividend yield.
Year-by-year returns
| Year | EWJ | TM |
|---|---|---|
| 2022 | -17.7% | -24.4% |
| 2023 | +20.3% | +38.2% |
| 2024 | +7.0% | +8.9% |
| 2025 | +25.8% | +12.2% |
| 2026 | +19.3% | -10.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EWJ and TM good diversifiers for each other?
Only partially. A correlation of 0.68 means EWJ 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 EWJ and TM?
The EWJ/TM correlation stands at 0.68 on a 3-year window (1 year: 0.55, 5 years: 0.69), computed from weekly returns as of 2026-08-27.
Is TM a good diversifier for EWJ?
Only partially. A correlation of 0.68 means EWJ 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 0.68 mean?
A reading of 0.68 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ewj-vs-tm.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ewj-vs-tm/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EWJ correlations · TM correlations
