HMC vs VEA: Correlation
Measured on weekly returns over the past three years, Honda Motor Company, Ltd. (HMC) and Vanguard FTSE Developed Markets ETF (VEA) carry a correlation of 0.49, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HMC and VEA?
On 3 years of weekly data the HMC/VEA correlation comes out at 0.49, moderate. The past 12 months show a weaker link (0.38) than the 3-year average (0.49). The 5-year figure is 0.51, and annualized covariance runs at 208.6 %².
Within HMC's tracked universe of 10 assets, VEA comes in at #5 by 3-year correlation. Correlation aside, the last 12 months split them widely, with VEA ahead by 36.0 points (-7.5% versus +28.5%). One caveat on sizing: HMC is 1.9 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 VEA: side by side
| HMC (Honda Motor Company, Ltd.) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | -7.5% | +28.5% |
| 5-year return | +21.7% | +63.5% |
| Volatility (ann.) | 28.1% | 15.1% |
| Beta vs S&P 500 | 0.61 | 0.79 |
| Max drawdown (3Y) | -35.2% | -13.5% |
| Market cap | $40.7B | – |
| P/E (trailing) | – | – |
| Dividend yield | 222.86% | 2.56% |
| Expense ratio | – | 0.03% |
| Assets under management | – | $314.9B |
| Sector / category | US Listed | ETF · International |
VEA is a Foreign Large Blend fund from Vanguard: $314.9B under management, 3769 holdings, a 0.03% expense ratio, a 2.56% trailing dividend yield.
Year-by-year returns
| Year | HMC | VEA |
|---|---|---|
| 2022 | -16.6% | -15.3% |
| 2023 | +39.9% | +17.9% |
| 2024 | -3.8% | +3.1% |
| 2025 | +5.9% | +35.2% |
| 2026 | +6.3% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HMC and VEA good diversifiers for each other?
Reasonably. At 0.49, HMC and VEA keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between HMC and VEA?
The HMC/VEA correlation stands at 0.49 on a 3-year window (1 year: 0.38, 5 years: 0.51), computed from weekly returns as of 2026-08-27.
Is VEA a good diversifier for HMC?
Reasonably. At 0.49, HMC and VEA keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.49 mean?
A reading of 0.49 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-vea.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/hmc-vs-vea/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: HMC correlations · VEA correlations
