ESI vs SPY: Correlation
Measured on weekly returns over the past three years, Element Solutions Inc. (ESI) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.55, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ESI and SPY?
Across a 3-year window, the weekly returns of ESI and SPY correlate at 0.55, moderate. The link has loosened recently: the 1-year correlation (0.43) runs below the 3-year figure (0.55). Stretching to 5 years gives 0.62, with an annualized covariance of 262.6 %².
Among the 18 assets we track against ESI, SPY ranks #9 by 3-year correlation. The last year tells two different stories: ESI led by 22.7 percentage points, +43.3% for ESI against +20.6% for SPY. Note the risk asymmetry: ESI runs 2.3 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
ESI vs SPY: side by side
| ESI (Element Solutions Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +43.3% | +20.6% |
| 5-year return | +67.5% | +82.4% |
| Volatility (ann.) | 32.8% | 14.5% |
| Beta vs S&P 500 | 1.26 | 1.00 |
| Max drawdown (3Y) | -40.0% | -18.8% |
| Market cap | $8.9B | – |
| P/E (trailing) | 49.4 | – |
| Dividend yield | 0.89% | 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 | ESI | SPY |
|---|---|---|
| 2022 | -23.9% | -18.2% |
| 2023 | +29.3% | +26.2% |
| 2024 | +11.3% | +24.9% |
| 2025 | -0.4% | +17.7% |
| 2026 | +46.7% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ESI and SPY good diversifiers for each other?
To a limited degree. At 0.55 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between ESI and SPY?
As of 2026-08-27, the correlation of weekly returns between ESI and SPY is 0.55 over 3 years, 0.43 over 1 year and 0.62 over 5 years.
Is SPY a good diversifier for ESI?
To a limited degree. At 0.55 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.55 mean?
A reading of 0.55 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: ESI correlations · SPY correlations
