DE vs SPY: Correlation
Deere & Company (DE) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.35.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DE and SPY?
On 3 years of weekly data the DE/SPY correlation comes out at 0.35, moderate. Lately the two have drifted apart, with the 1-year correlation at -0.05 versus 0.35 over 3 years. The 5-year figure is 0.44, and annualized covariance runs at 136.0 %².
Within DE's tracked universe of 33 assets, SPY comes in at #22 by 3-year correlation. Over the last 12 months DE came out ahead by 7.3 percentage points (+27.9% against +20.6%). The relationship is regime-dependent: the rolling one-year correlation swung between -0.02 and 0.63 over the past three years, so this pair behaves very differently depending on the market environment. One caveat on sizing: DE 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.
DE vs SPY: side by side
| DE (Deere & Company) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +27.9% | +20.6% |
| 5-year return | +74.5% | +82.4% |
| Volatility (ann.) | 26.7% | 14.5% |
| Beta vs S&P 500 | 0.65 | 1.00 |
| Max drawdown (3Y) | -19.9% | -18.8% |
| Market cap | $168.1B | – |
| P/E (trailing) | 35.2 | – |
| Dividend yield | 1.02% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Industrials | 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 | DE | SPY |
|---|---|---|
| 2022 | +26.6% | -18.2% |
| 2023 | -5.5% | +26.2% |
| 2024 | +7.6% | +24.9% |
| 2025 | +11.4% | +17.7% |
| 2026 | +34.5% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
DE represents 0.24% of SPY's portfolio, so part of any move in SPY is DE itself, and the correlation between them is partly mechanical.
Are DE and SPY good diversifiers for each other?
Reasonably. At 0.35, DE and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between DE and SPY?
Using weekly returns as of 2026-08-27: 0.35 over 3 years, with -0.05 over the last year and 0.44 over 5 years.
Is SPY a good diversifier for DE?
Reasonably. At 0.35, DE and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.35 mean?
A reading of 0.35 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: DE correlations · SPY correlations
