ADP vs SPY: Correlation
How closely do Automatic Data Processing (ADP) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.35, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ADP and SPY?
On 3 years of weekly data the ADP/SPY correlation comes out at 0.35, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.14 versus 0.35 over 3 years. The 5-year figure is 0.54, and annualized covariance runs at 110.4 %².
By 3-year correlation, SPY places #31 of the 43 assets tracked against ADP. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 24.1 percentage points (-3.5% for ADP against +20.6% for SPY). The relationship is regime-dependent: the rolling one-year correlation swung between 0.15 and 0.69 over the past three years, so this pair behaves very differently depending on the market environment.
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.
ADP vs SPY: side by side
| ADP (Automatic Data Processing) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -3.5% | +20.6% |
| 5-year return | +52.0% | +82.4% |
| Volatility (ann.) | 21.7% | 14.5% |
| Beta vs S&P 500 | 0.53 | 1.00 |
| Max drawdown (3Y) | -40.8% | -18.8% |
| Market cap | $113.1B | – |
| P/E (trailing) | 26.0 | – |
| Dividend yield | 2.36% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Industrials | ETF · US Large Cap |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | ADP | SPY |
|---|---|---|
| 2022 | -1.3% | -18.2% |
| 2023 | -0.2% | +26.2% |
| 2024 | +28.4% | +24.9% |
| 2025 | -10.2% | +17.7% |
| 2026 | +12.4% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.17% of SPY is ADP itself, so the fund partly moves with the stock by construction.
Are ADP and SPY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.35 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between ADP and SPY?
Using weekly returns as of 2026-08-27: 0.35 over 3 years, with 0.14 over the last year and 0.54 over 5 years.
Is SPY a good diversifier for ADP?
Yes, to a useful degree: a correlation of 0.35 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.35 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.
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Related comparisons
Hubs: ADP correlations · SPY correlations
