BMI vs SPY: Correlation
Badger Meter, Inc. (BMI) and SPDR S&P 500 ETF Trust (SPY) show a weak relationship: their 3-year correlation of weekly returns is 0.25.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BMI and SPY?
Over the past 3 years, BMI and SPY moved with a correlation of 0.25, which is weak. Lately the two have drifted apart, with the 1-year correlation at -0.09 versus 0.25 over 3 years. Over 5 years the correlation is 0.41, and the annualized covariance of weekly returns is 130.4 %².
By 3-year correlation, SPY places #7 of the 15 assets tracked against BMI. The last year tells two different stories: SPY led by 46.7 percentage points, -26.1% for BMI against +20.6% for SPY. One caveat on sizing: BMI is 2.5 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.
BMI vs SPY: side by side
| BMI (Badger Meter, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -26.1% | +20.6% |
| 5-year return | +33.9% | +82.4% |
| Volatility (ann.) | 35.9% | 14.5% |
| Beta vs S&P 500 | 0.62 | 1.00 |
| Max drawdown (3Y) | -55.1% | -18.8% |
| Market cap | $4.0B | – |
| P/E (trailing) | 32.1 | – |
| Dividend yield | 1.17% | 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 | BMI | SPY |
|---|---|---|
| 2022 | +3.2% | -18.2% |
| 2023 | +42.6% | +26.2% |
| 2024 | +38.3% | +24.9% |
| 2025 | -17.2% | +17.7% |
| 2026 | -20.3% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BMI and SPY good diversifiers for each other?
Reasonably. At 0.25, BMI and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between BMI and SPY?
Using weekly returns as of 2026-08-27: 0.25 over 3 years, with -0.09 over the last year and 0.41 over 5 years.
Is SPY a good diversifier for BMI?
Reasonably. At 0.25, BMI and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.25 mean?
A reading of 0.25 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: BMI correlations · SPY correlations
