TOYOF
TOYOTA MOTOR CORP ORD
stock OTC

>Toyota on the Tokyo exchange 7203.TYO rose 4.06% last six months. Its unsponsored ADR TOYOF rose 7.53% and its sponsored ADR TM is at 9.07% over last six months.
I don't know where you're pulling your data from but TM return over 6 months was 5.86% versus 7203.TYO which had 6.05% return.
On a day to day basis you might see some gaps because the Tokyo market and the US market operate on different hours. But once one of the markets open, the arbitrage would be immediate on it.

There might be an obvious answer that I'm missing.
Can someone explain to me whats going on with Toyotas stock? Toyota makes a significant amount of revenue in USD, conventional wisdom would say that if the Yen falls vs the USD that the stocks on the Tokyo exchange would do better than their dollar denominated ADR's since they would benefit from the conversion of Toyotas USD sales back to Yen even if everything else stay the same.
Toyota on the Tokyo exchange 7203.TYO rose 4.06% last six months. Its unsponsored ADR TOYOF rose 7.53% and its sponsored ADR TM is at 9.07% over last six months. TM isn't a thinly traded stock that might be subject to arbitrage due to lack of trading volume.
What makes it even more confusing is that once you calculate that the Yen has fallen by 2.9% against the dollar over the same period, the ADR has returned more than double what the underlying stock did in a currency adjusted return which seems completely backwards for the forex moment.

>Toyota on the Tokyo exchange 7203.TYO rose 4.06% last six months. Its unsponsored ADR TOYOF rose 7.53% and its sponsored ADR TM is at 9.07% over last six months.
I don't know where you're pulling your data from but TM return over 6 months was 5.86% versus 7203.TYO which had 6.05% return.
On a day to day basis you might see some gaps because the Tokyo market and the US market operate on different hours. But once one of the markets open, the arbitrage would be immediate on it.

There might be an obvious answer that I'm missing.
Can someone explain to me whats going on with Toyotas stock? Toyota makes a significant amount of revenue in USD, conventional wisdom would say that if the Yen falls vs the USD that the stocks on the Tokyo exchange would do better than their dollar denominated ADR's since they would benefit from the conversion of Toyotas USD sales back to Yen even if everything else stay the same.
Toyota on the Tokyo exchange 7203.TYO rose 4.06% last six months. Its unsponsored ADR TOYOF rose 7.53% and its sponsored ADR TM is at 9.07% over last six months. TM isn't a thinly traded stock that might be subject to arbitrage due to lack of trading volume.
What makes it even more confusing is that once you calculate that the Yen has fallen by 2.9% against the dollar over the same period, the ADR has returned more than double what the underlying stock did in a currency adjusted return which seems completely backwards for the forex moment.