ALGM vs SPY: Correlation
How closely do Allegro MicroSystems, Inc. (ALGM) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.46, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ALGM and SPY?
Across a 3-year window, the weekly returns of ALGM and SPY correlate at 0.46, moderate. The relationship has been stable: the 1-year correlation (0.52) sits close to the 3-year figure. Stretching to 5 years gives 0.52, with an annualized covariance of 382.1 %².
SPY is close to the least connected end of ALGM's tracked universe, ranking #8 of 11. Their 12-month results are close: +19.5% for ALGM against +20.6% for SPY. Note the risk asymmetry: ALGM runs 3.9 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.
ALGM vs SPY: side by side
| ALGM (Allegro MicroSystems, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +19.5% | +20.6% |
| 5-year return | +23.1% | +82.4% |
| Volatility (ann.) | 56.9% | 14.5% |
| Beta vs S&P 500 | 1.83 | 1.00 |
| Max drawdown (3Y) | -57.2% | -18.8% |
| Market cap | $7.0B | – |
| P/E (trailing) | 537.0 | – |
| Dividend yield | 0.00% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | US Listed | 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 | ALGM | SPY |
|---|---|---|
| 2022 | -17.0% | -18.2% |
| 2023 | +0.8% | +26.2% |
| 2024 | -27.8% | +24.9% |
| 2025 | +20.7% | +17.7% |
| 2026 | +42.5% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ALGM and SPY good diversifiers for each other?
Reasonably. At 0.46, ALGM and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between ALGM and SPY?
The ALGM/SPY correlation stands at 0.46 on a 3-year window (1 year: 0.52, 5 years: 0.52), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for ALGM?
Reasonably. At 0.46, ALGM and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.46 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: ALGM correlations · SPY correlations
