ARL vs SPY: Correlation
How closely do American Realty Investors, Inc. (ARL) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.27, which is weak.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARL and SPY?
Across a 3-year window, the weekly returns of ARL and SPY correlate at 0.27, weak. The link has loosened recently: the 1-year correlation (-0.09) runs below the 3-year figure (0.27). Stretching to 5 years gives 0.12, with an annualized covariance of 207.1 %².
Out of 10 assets tracked against ARL, SPY lands near the bottom at #6. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 23.4 percentage points (-2.8% for ARL against +20.6% for SPY). Note the risk asymmetry: ARL runs 3.6 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.
ARL vs SPY: side by side
| ARL (American Realty Investors, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -2.8% | +20.6% |
| 5-year return | +36.2% | +82.4% |
| Volatility (ann.) | 52.7% | 14.5% |
| Beta vs S&P 500 | 0.99 | 1.00 |
| Max drawdown (3Y) | -57.8% | -18.8% |
| Market cap | – | – |
| P/E (trailing) | 29.4 | – |
| 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 | ARL | SPY |
|---|---|---|
| 2022 | +102.8% | -18.2% |
| 2023 | -32.1% | +26.2% |
| 2024 | -15.7% | +24.9% |
| 2025 | +9.4% | +17.7% |
| 2026 | -6.6% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARL and SPY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.27 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between ARL and SPY?
As of 2026-08-27, the correlation of weekly returns between ARL and SPY is 0.27 over 3 years, -0.09 over 1 year and 0.12 over 5 years.
Is SPY a good diversifier for ARL?
Yes, to a useful degree: a correlation of 0.27 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.27 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: ARL correlations · SPY correlations
