BAC vs SPY: Correlation
How closely do Bank of America (BAC) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.61, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BAC and SPY?
Across a 3-year window, the weekly returns of BAC and SPY correlate at 0.61, strong. The past 12 months show a weaker link (0.39) than the 3-year average (0.61). Stretching to 5 years gives 0.63, with an annualized covariance of 232.3 %².
Among the 45 assets we track against BAC, SPY ranks #27 by 3-year correlation. Neither side won the trailing year by much: +24.1% against +20.6%. The rolling one-year correlation moved between 0.35 and 0.80 over the past three years, a moderate range. One caveat on sizing: BAC is 1.8 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.
BAC vs SPY: side by side
| BAC (Bank of America) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +24.1% | +20.6% |
| 5-year return | +66.0% | +82.4% |
| Volatility (ann.) | 26.5% | 14.5% |
| Beta vs S&P 500 | 1.11 | 1.00 |
| Max drawdown (3Y) | -27.5% | -18.8% |
| Market cap | $427.7B | – |
| P/E (trailing) | 14.1 | – |
| Dividend yield | 1.80% | 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 | BAC | SPY |
|---|---|---|
| 2022 | -23.8% | -18.2% |
| 2023 | +4.8% | +26.2% |
| 2024 | +33.9% | +24.9% |
| 2025 | +28.0% | +17.7% |
| 2026 | +12.4% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
BAC represents 0.61% of SPY's portfolio, so part of any move in SPY is BAC itself, and the correlation between them is partly mechanical.
Are BAC and SPY good diversifiers for each other?
Somewhat, no more. With 0.61 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between BAC and SPY?
Using weekly returns as of 2026-08-27: 0.61 over 3 years, with 0.39 over the last year and 0.63 over 5 years.
Is SPY a good diversifier for BAC?
Somewhat, no more. With 0.61 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.61 mean?
On the −1 to +1 scale, 0.61 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: BAC correlations · SPY correlations
