HMC vs IEFA: Correlation
How closely do Honda Motor Company, Ltd. (HMC) and iShares Core MSCI EAFE ETF (IEFA) trade together? Their weekly returns over three years give a correlation of 0.52, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HMC and IEFA?
Over the past 3 years, HMC and IEFA moved with a correlation of 0.52, which is moderate. Recent behaviour matches the longer record: 0.44 over 1 year against 0.52 over 3. Over 5 years the correlation is 0.53, and the annualized covariance of weekly returns is 217.6 %².
By 3-year correlation, IEFA places #4 of the 10 assets tracked against HMC. Their recent paths diverged sharply: over the last 12 months IEFA outperformed by 29.3 percentage points (-7.5% for HMC against +21.8% for IEFA). Note the risk asymmetry: HMC runs 1.9 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
HMC vs IEFA: side by side
| HMC (Honda Motor Company, Ltd.) | IEFA (iShares Core MSCI EAFE ETF) | |
|---|---|---|
| 1-year return | -7.5% | +21.8% |
| 5-year return | +21.7% | +54.5% |
| Volatility (ann.) | 28.1% | 15.0% |
| Beta vs S&P 500 | 0.61 | 0.77 |
| Max drawdown (3Y) | -35.2% | -13.8% |
| Market cap | $40.7B | – |
| P/E (trailing) | – | – |
| Dividend yield | 222.86% | 3.35% |
| Expense ratio | – | 0.07% |
| Assets under management | – | $190.1B |
| Sector / category | US Listed | ETF · International |
IEFA, iShares's Foreign Large Blend fund, carries $190.1B under management, 1620 holdings, a 0.07% expense ratio, a 3.35% trailing dividend yield.
Year-by-year returns
| Year | HMC | IEFA |
|---|---|---|
| 2022 | -16.6% | -15.2% |
| 2023 | +39.9% | +18.0% |
| 2024 | -3.8% | +3.3% |
| 2025 | +5.9% | +32.1% |
| 2026 | +6.3% | +14.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HMC and IEFA good diversifiers for each other?
Only partially. A correlation of 0.52 means HMC and IEFA 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 HMC and IEFA?
The HMC/IEFA correlation stands at 0.52 on a 3-year window (1 year: 0.44, 5 years: 0.53), computed from weekly returns as of 2026-08-27.
Is IEFA a good diversifier for HMC?
Only partially. A correlation of 0.52 means HMC and IEFA share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.52 mean?
A reading of 0.52 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/hmc-vs-iefa.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/hmc-vs-iefa/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: HMC correlations · IEFA correlations
