IBM vs SPY: Correlation
IBM (IBM) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.33.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBM and SPY?
On 3 years of weekly data the IBM/SPY correlation comes out at 0.33, moderate. Little has changed lately, as the 1-year reading of 0.36 lands near the 3-year figure. The 5-year figure is 0.38, and annualized covariance runs at 163.5 %².
Among the 28 assets we track against IBM, SPY ranks #16 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 20.5 percentage points (+0.1% for IBM against +20.6% for SPY). On a rolling one-year basis the correlation drifted between 0.20 and 0.68, a moderate band. Note the risk asymmetry: IBM runs 2.4 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.
IBM vs SPY: side by side
| IBM (IBM) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +0.1% | +20.6% |
| 5-year return | +117.6% | +82.4% |
| Volatility (ann.) | 34.7% | 14.5% |
| Beta vs S&P 500 | 0.78 | 1.00 |
| Max drawdown (3Y) | -37.5% | -18.8% |
| Market cap | $225.0B | – |
| P/E (trailing) | 20.4 | – |
| Dividend yield | 2.93% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Information Technology | 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 | IBM | SPY |
|---|---|---|
| 2022 | +10.6% | -18.2% |
| 2023 | +21.8% | +26.2% |
| 2024 | +39.3% | +24.9% |
| 2025 | +38.2% | +17.7% |
| 2026 | -17.7% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
IBM represents 0.33% of SPY's portfolio, so part of any move in SPY is IBM itself, and the correlation between them is partly mechanical.
Are IBM and SPY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.33 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between IBM and SPY?
The IBM/SPY correlation stands at 0.33 on a 3-year window (1 year: 0.36, 5 years: 0.38), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for IBM?
Yes, to a useful degree: a correlation of 0.33 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.33 mean?
On the −1 to +1 scale, 0.33 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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