IBP vs SPY: Correlation
How closely do Installed Building Products, Inc. (IBP) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.36, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBP and SPY?
Across a 3-year window, the weekly returns of IBP and SPY correlate at 0.36, moderate. The link has loosened recently: the 1-year correlation (0.11) runs below the 3-year figure (0.36). Stretching to 5 years gives 0.44, with an annualized covariance of 236.4 %².
Out of 17 assets tracked against IBP, SPY lands near the bottom at #13. Correlation aside, the last 12 months split them widely, with SPY ahead by 29.9 points (-9.3% versus +20.6%). Note the risk asymmetry: IBP runs 3.2 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.
IBP vs SPY: side by side
| IBP (Installed Building Products, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -9.3% | +20.6% |
| 5-year return | +107.4% | +82.4% |
| Volatility (ann.) | 45.9% | 14.5% |
| Beta vs S&P 500 | 1.13 | 1.00 |
| Max drawdown (3Y) | -42.7% | -18.8% |
| Market cap | $6.4B | – |
| P/E (trailing) | 26.5 | – |
| Dividend yield | 0.62% | 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 | IBP | SPY |
|---|---|---|
| 2022 | -37.3% | -18.2% |
| 2023 | +117.6% | +26.2% |
| 2024 | -2.9% | +24.9% |
| 2025 | +50.6% | +17.7% |
| 2026 | -6.2% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBP and SPY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.36 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between IBP and SPY?
The IBP/SPY correlation stands at 0.36 on a 3-year window (1 year: 0.11, 5 years: 0.44), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for IBP?
Yes, to a useful degree: a correlation of 0.36 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.36 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: IBP correlations · SPY correlations
