FANG vs SPY: Correlation
Measured on weekly returns over the past three years, Diamondback Energy (FANG) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.13, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FANG and SPY?
Over the past 3 years, FANG and SPY moved with a correlation of 0.13, which is weak. Lately the two have drifted apart, with the 1-year correlation at -0.32 versus 0.13 over 3 years. Over 5 years the correlation is 0.27, and the annualized covariance of weekly returns is 66.5 %².
Within FANG's tracked universe of 41 assets, SPY comes in at #29 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months FANG outperformed by 19.0 percentage points (+39.6% for FANG against +20.6% for SPY). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.32 to 0.46. Note the risk asymmetry: FANG runs 2.4 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.
FANG vs SPY: side by side
| FANG (Diamondback Energy) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +39.6% | +20.6% |
| 5-year return | +224.9% | +82.4% |
| Volatility (ann.) | 34.1% | 14.5% |
| Beta vs S&P 500 | 0.32 | 1.00 |
| Max drawdown (3Y) | -42.1% | -18.8% |
| Market cap | $56.1B | – |
| P/E (trailing) | 38.0 | – |
| Dividend yield | 2.13% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Energy | 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 | FANG | SPY |
|---|---|---|
| 2022 | +35.3% | -18.2% |
| 2023 | +19.7% | +26.2% |
| 2024 | +10.3% | +24.9% |
| 2025 | -5.6% | +17.7% |
| 2026 | +35.7% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
FANG represents 0.06% of SPY's portfolio, so part of any move in SPY is FANG itself, and the correlation between them is partly mechanical.
Are FANG and SPY good diversifiers for each other?
By historical standards, yes. A correlation of 0.13 means the two rarely move for the same reasons.
FAQ
What is the correlation between FANG and SPY?
Using weekly returns as of 2026-08-27: 0.13 over 3 years, with -0.32 over the last year and 0.27 over 5 years.
Is SPY a good diversifier for FANG?
By historical standards, yes. A correlation of 0.13 means the two rarely move for the same reasons.
What does a correlation of 0.13 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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Hubs: FANG correlations · SPY correlations
