HMC vs TM: Correlation
How closely do Honda Motor Company, Ltd. (HMC) and Toyota Motor Corporation (TM) trade together? Their weekly returns over three years give a correlation of 0.75, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HMC and TM?
On 3 years of weekly data the HMC/TM correlation comes out at 0.75, strong. Little has changed lately, as the 1-year reading of 0.71 lands near the 3-year figure. The 5-year figure is 0.74, and annualized covariance runs at 609.2 %².
Few assets follow HMC as closely as TM, which ranks #1 of 10 tracked partners. On 12-month performance TM holds a 5.1-point edge, -7.5% against -2.4%.
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 TM: side by side
| HMC (Honda Motor Company, Ltd.) | TM (Toyota Motor Corporation) | |
|---|---|---|
| 1-year return | -7.5% | -2.4% |
| 5-year return | +21.7% | +24.1% |
| Volatility (ann.) | 28.1% | 28.9% |
| Beta vs S&P 500 | 0.61 | 0.83 |
| Max drawdown (3Y) | -35.2% | -34.9% |
| Market cap | $40.7B | $227.4B |
| P/E (trailing) | – | 8.7 |
| Dividend yield | 222.86% | 49.52% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | HMC | TM |
|---|---|---|
| 2022 | -16.6% | -24.4% |
| 2023 | +39.9% | +38.2% |
| 2024 | -3.8% | +8.9% |
| 2025 | +5.9% | +12.2% |
| 2026 | +6.3% | -10.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HMC and TM good diversifiers for each other?
Somewhat, no more. With 0.75 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between HMC and TM?
As of 2026-08-27, the correlation of weekly returns between HMC and TM is 0.75 over 3 years, 0.71 over 1 year and 0.74 over 5 years.
Is TM a good diversifier for HMC?
Somewhat, no more. With 0.75 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.75 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/hmc-vs-tm.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/hmc-vs-tm/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: HMC correlations · TM correlations
