ESAB vs SPY: Correlation
Measured on weekly returns over the past three years, ESAB Corporation (ESAB) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.52, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ESAB and SPY?
On 3 years of weekly data the ESAB/SPY correlation comes out at 0.52, moderate. Little has changed lately, as the 1-year reading of 0.47 lands near the 3-year figure. The 5-year figure is 0.53, and annualized covariance runs at 270.8 %².
Out of 13 assets tracked against ESAB, SPY lands near the bottom at #9. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 53.1 percentage points (-32.5% for ESAB against +20.6% for SPY). Risk is not evenly split, since ESAB carries 2.5 times the volatility of the other side.
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.
ESAB vs SPY: side by side
| ESAB (ESAB Corporation) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -32.5% | +20.6% |
| 5-year return | +60.4% | +82.4% |
| Volatility (ann.) | 36.3% | 14.5% |
| Beta vs S&P 500 | 1.30 | 1.00 |
| Max drawdown (3Y) | -41.6% | -18.8% |
| Market cap | $4.9B | – |
| P/E (trailing) | 25.8 | – |
| Dividend yield | 0.51% | 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 | ESAB | SPY |
|---|---|---|
| 2022 | – | -18.2% |
| 2023 | +85.2% | +26.2% |
| 2024 | +38.9% | +24.9% |
| 2025 | -6.5% | +17.7% |
| 2026 | -29.1% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ESAB and SPY good diversifiers for each other?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ESAB and SPY?
Using weekly returns as of 2026-08-27: 0.52 over 3 years, with 0.47 over the last year and 0.53 over 5 years.
Is SPY a good diversifier for ESAB?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.52 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: ESAB correlations · SPY correlations
