TM vs VEA: Correlation
Toyota Motor Corporation (TM) and Vanguard FTSE Developed Markets ETF (VEA) show a moderate relationship: their 3-year correlation of weekly returns is 0.56.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TM and VEA?
Across a 3-year window, the weekly returns of TM and VEA correlate at 0.56, moderate. Recent behaviour matches the longer record: 0.54 over 1 year against 0.56 over 3. Stretching to 5 years gives 0.58, with an annualized covariance of 245.7 %².
Within TM's tracked universe of 10 assets, VEA comes in at #5 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months VEA outperformed by 30.9 percentage points (-2.4% for TM against +28.5% for VEA). Note the risk asymmetry: TM 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.
TM vs VEA: side by side
| TM (Toyota Motor Corporation) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | -2.4% | +28.5% |
| 5-year return | +24.1% | +63.5% |
| Volatility (ann.) | 28.9% | 15.1% |
| Beta vs S&P 500 | 0.83 | 0.79 |
| Max drawdown (3Y) | -34.9% | -13.5% |
| Market cap | $227.4B | – |
| P/E (trailing) | 8.7 | – |
| Dividend yield | 49.52% | 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 | TM | VEA |
|---|---|---|
| 2022 | -24.4% | -15.3% |
| 2023 | +38.2% | +17.9% |
| 2024 | +8.9% | +3.1% |
| 2025 | +12.2% | +35.2% |
| 2026 | -10.3% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TM and VEA good diversifiers for each other?
Only partially. A correlation of 0.56 means TM and VEA 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 TM and VEA?
The TM/VEA correlation stands at 0.56 on a 3-year window (1 year: 0.54, 5 years: 0.58), computed from weekly returns as of 2026-08-27.
Is VEA a good diversifier for TM?
Only partially. A correlation of 0.56 means TM and VEA share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.56 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/tm-vs-vea.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/tm-vs-vea/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: TM correlations · VEA correlations
