ARES vs SPY: Correlation
How closely do Ares Management (ARES) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.63, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARES and SPY?
Across a 3-year window, the weekly returns of ARES and SPY correlate at 0.63, strong. The link has loosened recently: the 1-year correlation (0.45) runs below the 3-year figure (0.63). Stretching to 5 years gives 0.71, with an annualized covariance of 323.0 %².
By 3-year correlation, SPY places #12 of the 32 assets tracked against ARES. The last year tells two different stories: SPY led by 38.3 percentage points, -17.7% for ARES against +20.6% for SPY. On a rolling one-year basis the correlation drifted between 0.41 and 0.85, a moderate band. Note the risk asymmetry: ARES runs 2.4 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.
ARES vs SPY: side by side
| ARES (Ares Management) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -17.7% | +20.6% |
| 5-year return | +118.7% | +82.4% |
| Volatility (ann.) | 35.5% | 14.5% |
| Beta vs S&P 500 | 1.55 | 1.00 |
| Max drawdown (3Y) | -50.0% | -18.8% |
| Market cap | $47.0B | – |
| P/E (trailing) | 65.0 | – |
| Dividend yield | 3.48% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Financials | 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 | ARES | SPY |
|---|---|---|
| 2022 | -12.8% | -18.2% |
| 2023 | +79.5% | +26.2% |
| 2024 | +52.7% | +24.9% |
| 2025 | -6.2% | +17.7% |
| 2026 | -9.8% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARES and SPY good diversifiers for each other?
Only partially. A correlation of 0.63 means ARES and SPY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between ARES and SPY?
Using weekly returns as of 2026-08-27: 0.63 over 3 years, with 0.45 over the last year and 0.71 over 5 years.
Is SPY a good diversifier for ARES?
Only partially. A correlation of 0.63 means ARES and SPY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.63 mean?
A reading of 0.63 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: ARES correlations · SPY correlations
