FAF vs SPY: Correlation
First American Corporation (New) (FAF) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.40.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FAF and SPY?
Over the past 3 years, FAF and SPY moved with a correlation of 0.40, which is moderate. Little has changed lately, as the 1-year reading of 0.34 lands near the 3-year figure. Over 5 years the correlation is 0.53, and the annualized covariance of weekly returns is 150.0 %².
Among the 11 assets we track against FAF, SPY sits near the bottom by co-movement, at rank #7. Twelve-month performance is nearly a tie, at +15.7% for FAF and +20.6% for SPY. Risk is not evenly split, since FAF carries 1.8 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.
FAF vs SPY: side by side
| FAF (First American Corporation (New)) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +15.7% | +20.6% |
| 5-year return | +24.3% | +82.4% |
| Volatility (ann.) | 25.7% | 14.5% |
| Beta vs S&P 500 | 0.72 | 1.00 |
| Max drawdown (3Y) | -22.1% | -18.8% |
| Market cap | $7.6B | – |
| P/E (trailing) | 10.2 | – |
| Dividend yield | 2.99% | 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 | FAF | SPY |
|---|---|---|
| 2022 | -30.6% | -18.2% |
| 2023 | +27.7% | +26.2% |
| 2024 | +0.4% | +24.9% |
| 2025 | +1.9% | +17.7% |
| 2026 | +23.3% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FAF and SPY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between FAF and SPY?
The FAF/SPY correlation stands at 0.40 on a 3-year window (1 year: 0.34, 5 years: 0.53), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for FAF?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.40 mean?
On the −1 to +1 scale, 0.40 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: FAF correlations · SPY correlations
