HWM vs SPY: Correlation
Measured on weekly returns over the past three years, Howmet Aerospace (HWM) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.56, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HWM and SPY?
Over the past 3 years, HWM and SPY moved with a correlation of 0.56, which is moderate. The link has loosened recently: the 1-year correlation (0.38) runs below the 3-year figure (0.56). Over 5 years the correlation is 0.59, and the annualized covariance of weekly returns is 258.4 %².
Among the 35 assets we track against HWM, SPY ranks #15 by 3-year correlation. Correlation aside, the last 12 months split them widely, with HWM ahead by 32.1 points (+52.7% versus +20.6%). This link changes with the market regime, having swung between 0.28 and 0.78 on a rolling one-year basis. Risk is not evenly split, since HWM carries 2.2 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.
HWM vs SPY: side by side
| HWM (Howmet Aerospace) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +52.7% | +20.6% |
| 5-year return | +754.4% | +82.4% |
| Volatility (ann.) | 32.1% | 14.5% |
| Beta vs S&P 500 | 1.24 | 1.00 |
| Max drawdown (3Y) | -19.4% | -18.8% |
| Market cap | $106.7B | – |
| P/E (trailing) | 58.2 | – |
| Dividend yield | 0.18% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Industrials | 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 | HWM | SPY |
|---|---|---|
| 2022 | +24.2% | -18.2% |
| 2023 | +37.8% | +26.2% |
| 2024 | +102.7% | +24.9% |
| 2025 | +88.0% | +17.7% |
| 2026 | +30.7% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.16% of SPY is HWM itself, so the fund partly moves with the stock by construction.
Are HWM and SPY good diversifiers for each other?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between HWM and SPY?
The HWM/SPY correlation stands at 0.56 on a 3-year window (1 year: 0.38, 5 years: 0.59), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for HWM?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.56 mean?
A reading of 0.56 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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Hubs: HWM correlations · SPY correlations
