CSWC vs SPY: Correlation
How closely do Capital Southwest Corporation (CSWC) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.47, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CSWC and SPY?
On 3 years of weekly data the CSWC/SPY correlation comes out at 0.47, moderate. Little has changed lately, as the 1-year reading of 0.49 lands near the 3-year figure. The 5-year figure is 0.56, and annualized covariance runs at 134.6 %².
Among the 17 assets we track against CSWC, SPY ranks #10 by 3-year correlation. Their 12-month results are close: +25.5% for CSWC against +20.6% for SPY.
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.
CSWC vs SPY: side by side
| CSWC (Capital Southwest Corporation) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +25.5% | +20.6% |
| 5-year return | +72.3% | +82.4% |
| Volatility (ann.) | 20.0% | 14.5% |
| Beta vs S&P 500 | 0.64 | 1.00 |
| Max drawdown (3Y) | -27.7% | -18.8% |
| Market cap | $1.6B | – |
| P/E (trailing) | 14.0 | – |
| Dividend yield | 9.20% | 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 | CSWC | SPY |
|---|---|---|
| 2022 | -24.4% | -18.2% |
| 2023 | +56.1% | +26.2% |
| 2024 | +2.1% | +24.9% |
| 2025 | +14.3% | +17.7% |
| 2026 | +23.1% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CSWC and SPY good diversifiers for each other?
Reasonably. At 0.47, CSWC and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between CSWC and SPY?
The CSWC/SPY correlation stands at 0.47 on a 3-year window (1 year: 0.49, 5 years: 0.56), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for CSWC?
Reasonably. At 0.47, CSWC and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.47 mean?
On the −1 to +1 scale, 0.47 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: CSWC correlations · SPY correlations
