AOS vs SPY: Correlation
Measured on weekly returns over the past three years, A. O. Smith (AOS) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.41, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AOS and SPY?
On 3 years of weekly data the AOS/SPY correlation comes out at 0.41, moderate. The past 12 months show a weaker link (0.16) than the 3-year average (0.41). The 5-year figure is 0.55, and annualized covariance runs at 140.7 %².
Within AOS's tracked universe of 33 assets, SPY comes in at #22 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 33.2 percentage points (-12.6% for AOS against +20.6% for SPY). The relationship is regime-dependent: the rolling one-year correlation swung between 0.14 and 0.64 over the past three years, so this pair behaves very differently depending on the market environment. One caveat on sizing: AOS is 1.6 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.
AOS vs SPY: side by side
| AOS (A. O. Smith) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -12.6% | +20.6% |
| 5-year return | -6.7% | +82.4% |
| Volatility (ann.) | 23.5% | 14.5% |
| Beta vs S&P 500 | 0.67 | 1.00 |
| Max drawdown (3Y) | -36.9% | -18.8% |
| Market cap | $8.4B | – |
| P/E (trailing) | 17.4 | – |
| Dividend yield | 2.27% | 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 | AOS | SPY |
|---|---|---|
| 2022 | -32.1% | -18.2% |
| 2023 | +46.7% | +26.2% |
| 2024 | -15.9% | +24.9% |
| 2025 | +0.1% | +17.7% |
| 2026 | -5.8% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AOS and SPY good diversifiers for each other?
A fair diversifier. At 0.41, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between AOS and SPY?
As of 2026-08-27, the correlation of weekly returns between AOS and SPY is 0.41 over 3 years, 0.16 over 1 year and 0.55 over 5 years.
Is SPY a good diversifier for AOS?
A fair diversifier. At 0.41, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.41 mean?
A reading of 0.41 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: AOS correlations · SPY correlations
