HOOD vs SPY: Correlation
Robinhood Markets (HOOD) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.58.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HOOD and SPY?
On 3 years of weekly data the HOOD/SPY correlation comes out at 0.58, moderate. Recent behaviour matches the longer record: 0.59 over 1 year against 0.58 over 3. The 5-year figure is 0.53, and annualized covariance runs at 602.6 %².
Within HOOD's tracked universe of 39 assets, SPY comes in at #14 by 3-year correlation. On 12-month performance SPY holds a 14.0-point edge, +6.6% against +20.6%. Across three years, the rolling one-year figure varied moderately, from 0.31 to 0.76. Note the risk asymmetry: HOOD runs 4.9 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.
HOOD vs SPY: side by side
| HOOD (Robinhood Markets) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +6.6% | +20.6% |
| 5-year return | +151.5% | +82.4% |
| Volatility (ann.) | 71.4% | 14.5% |
| Beta vs S&P 500 | 2.88 | 1.00 |
| Max drawdown (3Y) | -57.3% | -18.8% |
| Market cap | $98.7B | – |
| P/E (trailing) | 48.1 | – |
| Dividend yield | 0.00% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Financials | 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 | HOOD | SPY |
|---|---|---|
| 2022 | -54.2% | -18.2% |
| 2023 | +56.5% | +26.2% |
| 2024 | +192.5% | +24.9% |
| 2025 | +203.5% | +17.7% |
| 2026 | -3.0% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
HOOD represents 0.13% of SPY's portfolio, so part of any move in SPY is HOOD itself, and the correlation between them is partly mechanical.
Are HOOD and SPY good diversifiers for each other?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between HOOD and SPY?
The HOOD/SPY correlation stands at 0.58 on a 3-year window (1 year: 0.59, 5 years: 0.53), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for HOOD?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.58 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: HOOD correlations · SPY correlations
