ESE vs SPY: Correlation
How closely do ESCO Technologies Inc. (ESE) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.38, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ESE and SPY?
Across a 3-year window, the weekly returns of ESE and SPY correlate at 0.38, moderate. The link has loosened recently: the 1-year correlation (0.12) runs below the 3-year figure (0.38). Stretching to 5 years gives 0.48, with an annualized covariance of 164.7 %².
Among the 11 assets we track against ESE, SPY sits near the bottom by co-movement, at rank #7. Their recent paths diverged sharply: over the last 12 months ESE outperformed by 21.4 percentage points (+42.0% for ESE against +20.6% for SPY). One caveat on sizing: ESE is 2.0 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.
ESE vs SPY: side by side
| ESE (ESCO Technologies Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +42.0% | +20.6% |
| 5-year return | +214.2% | +82.4% |
| Volatility (ann.) | 29.6% | 14.5% |
| Beta vs S&P 500 | 0.79 | 1.00 |
| Max drawdown (3Y) | -22.3% | -18.8% |
| Market cap | $7.3B | – |
| P/E (trailing) | 52.3 | – |
| Dividend yield | 0.11% | 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 | ESE | SPY |
|---|---|---|
| 2022 | -2.3% | -18.2% |
| 2023 | +34.1% | +26.2% |
| 2024 | +14.1% | +24.9% |
| 2025 | +47.0% | +17.7% |
| 2026 | +44.2% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ESE and SPY good diversifiers for each other?
Reasonably. At 0.38, ESE and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between ESE and SPY?
Using weekly returns as of 2026-08-27: 0.38 over 3 years, with 0.12 over the last year and 0.48 over 5 years.
Is SPY a good diversifier for ESE?
Reasonably. At 0.38, ESE and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.38 mean?
On the −1 to +1 scale, 0.38 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ese-vs-spy.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ese-vs-spy/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ESE correlations · SPY correlations
