HLI vs SPY: Correlation
Houlihan Lokey, Inc. (HLI) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.54.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HLI and SPY?
Over the past 3 years, HLI and SPY moved with a correlation of 0.54, which is moderate. The link has loosened recently: the 1-year correlation (0.40) runs below the 3-year figure (0.54). Over 5 years the correlation is 0.54, and the annualized covariance of weekly returns is 199.0 %².
By 3-year correlation, SPY places #7 of the 15 assets tracked against HLI. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 54.3 percentage points (-33.7% for HLI against +20.6% for SPY). One caveat on sizing: HLI is 1.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
HLI vs SPY: side by side
| HLI (Houlihan Lokey, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -33.7% | +20.6% |
| 5-year return | +58.6% | +82.4% |
| Volatility (ann.) | 25.5% | 14.5% |
| Beta vs S&P 500 | 0.95 | 1.00 |
| Max drawdown (3Y) | -40.3% | -18.8% |
| Market cap | $9.1B | – |
| P/E (trailing) | 21.8 | – |
| Dividend yield | 1.93% | 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 | HLI | SPY |
|---|---|---|
| 2022 | -13.9% | -18.2% |
| 2023 | +40.7% | +26.2% |
| 2024 | +47.0% | +24.9% |
| 2025 | +1.6% | +17.7% |
| 2026 | -24.3% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HLI and SPY good diversifiers for each other?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between HLI and SPY?
As of 2026-08-27, the correlation of weekly returns between HLI and SPY is 0.54 over 3 years, 0.40 over 1 year and 0.54 over 5 years.
Is SPY a good diversifier for HLI?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.54 mean?
A reading of 0.54 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: HLI correlations · SPY correlations
