HD vs SPY: Correlation
Measured on weekly returns over the past three years, Home Depot (The) (HD) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.53, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HD and SPY?
Over the past 3 years, HD and SPY moved with a correlation of 0.53, which is moderate. The relationship has been stable: the 1-year correlation (0.44) sits close to the 3-year figure. Over 5 years the correlation is 0.58, and the annualized covariance of weekly returns is 182.2 %².
Among the 54 assets we track against HD, SPY ranks #25 by 3-year correlation. Correlation aside, the last 12 months split them widely, with SPY ahead by 38.0 points (-17.4% versus +20.6%). On a rolling one-year basis the correlation drifted between 0.41 and 0.80, a moderate band. Risk is not evenly split, since HD carries 1.6 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.
HD vs SPY: side by side
| HD (Home Depot (The)) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -17.4% | +20.6% |
| 5-year return | +13.8% | +82.4% |
| Volatility (ann.) | 23.6% | 14.5% |
| Beta vs S&P 500 | 0.87 | 1.00 |
| Max drawdown (3Y) | -28.8% | -18.8% |
| Market cap | $327.9B | – |
| P/E (trailing) | 23.4 | – |
| Dividend yield | 1.38% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Consumer Discretionary | 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 | HD | SPY |
|---|---|---|
| 2022 | -22.0% | -18.2% |
| 2023 | +12.8% | +26.2% |
| 2024 | +15.0% | +24.9% |
| 2025 | -9.3% | +17.7% |
| 2026 | -3.1% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.5% of SPY is HD itself, so the fund partly moves with the stock by construction.
Are HD and SPY good diversifiers for each other?
Only partially. A correlation of 0.53 means HD and SPY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between HD and SPY?
As of 2026-08-27, the correlation of weekly returns between HD and SPY is 0.53 over 3 years, 0.44 over 1 year and 0.58 over 5 years.
Is SPY a good diversifier for HD?
Only partially. A correlation of 0.53 means HD and SPY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.53 mean?
On the −1 to +1 scale, 0.53 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: HD correlations · SPY correlations
