ARCO vs SPY: Correlation
Arcos Dorados Holdings Inc. Class A Shares (ARCO) and SPDR S&P 500 ETF Trust (SPY) show a weak relationship: their 3-year correlation of weekly returns is 0.28.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARCO and SPY?
Across a 3-year window, the weekly returns of ARCO and SPY correlate at 0.28, weak. Recent behaviour matches the longer record: 0.36 over 1 year against 0.28 over 3. Stretching to 5 years gives 0.27, with an annualized covariance of 122.3 %².
Among the 10 assets we track against ARCO, SPY sits near the bottom by co-movement, at rank #6. Twelve-month performance is nearly a tie, at +18.0% for ARCO and +20.6% for SPY. Risk is not evenly split, since ARCO carries 2.1 times the volatility of the other side.
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.
ARCO vs SPY: side by side
| ARCO (Arcos Dorados Holdings Inc. Class A Shares) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +18.0% | +20.6% |
| 5-year return | +59.4% | +82.4% |
| Volatility (ann.) | 30.6% | 14.5% |
| Beta vs S&P 500 | 0.59 | 1.00 |
| Max drawdown (3Y) | -47.9% | -18.8% |
| Market cap | $1.7B | – |
| P/E (trailing) | 6.5 | – |
| Dividend yield | 3.50% | 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 | ARCO | SPY |
|---|---|---|
| 2022 | +46.3% | -18.2% |
| 2023 | +54.9% | +26.2% |
| 2024 | -41.0% | +24.9% |
| 2025 | +4.1% | +17.7% |
| 2026 | +10.0% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARCO and SPY good diversifiers for each other?
Reasonably. At 0.28, ARCO and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between ARCO and SPY?
Using weekly returns as of 2026-08-27: 0.28 over 3 years, with 0.36 over the last year and 0.27 over 5 years.
Is SPY a good diversifier for ARCO?
Reasonably. At 0.28, ARCO and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.28 mean?
On the −1 to +1 scale, 0.28 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: ARCO correlations · SPY correlations
