FHI vs SPY: Correlation
How closely do Federated Hermes, Inc. (FHI) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.41, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FHI and SPY?
Over the past 3 years, FHI and SPY moved with a correlation of 0.41, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.23 versus 0.41 over 3 years. Over 5 years the correlation is 0.48, and the annualized covariance of weekly returns is 111.9 %².
By 3-year correlation, SPY places #6 of the 11 assets tracked against FHI. Their 12-month results are close: +23.1% for FHI against +20.6% for SPY.
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.
FHI vs SPY: side by side
| FHI (Federated Hermes, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +23.1% | +20.6% |
| 5-year return | +131.6% | +82.4% |
| Volatility (ann.) | 19.0% | 14.5% |
| Beta vs S&P 500 | 0.54 | 1.00 |
| Max drawdown (3Y) | -16.6% | -18.8% |
| Market cap | $4.8B | – |
| P/E (trailing) | 12.1 | – |
| Dividend yield | 2.15% | 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 | FHI | SPY |
|---|---|---|
| 2022 | -0.2% | -18.2% |
| 2023 | -3.8% | +26.2% |
| 2024 | +29.6% | +24.9% |
| 2025 | +30.5% | +17.7% |
| 2026 | +27.0% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FHI and SPY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.41 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between FHI and SPY?
The FHI/SPY correlation stands at 0.41 on a 3-year window (1 year: 0.23, 5 years: 0.48), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for FHI?
Yes, to a useful degree: a correlation of 0.41 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.41 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: FHI correlations · SPY correlations
