IIPR vs SPY: Correlation
Measured on weekly returns over the past three years, Innovative Industrial Properties, Inc. (IIPR) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.31, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IIPR and SPY?
Over the past 3 years, IIPR and SPY moved with a correlation of 0.31, which is moderate. The link has loosened recently: the 1-year correlation (0.17) runs below the 3-year figure (0.31). Over 5 years the correlation is 0.45, and the annualized covariance of weekly returns is 177.4 %².
By 3-year correlation, SPY places #12 of the 19 assets tracked against IIPR. The trailing year gives SPY the advantage: +15.0% versus +20.6%, a 5.6-point spread. Note the risk asymmetry: IIPR runs 2.7 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.
IIPR vs SPY: side by side
| IIPR (Innovative Industrial Properties, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +15.0% | +20.6% |
| 5-year return | -63.8% | +82.4% |
| Volatility (ann.) | 39.6% | 14.5% |
| Beta vs S&P 500 | 0.85 | 1.00 |
| Max drawdown (3Y) | -62.9% | -18.8% |
| Market cap | $1.6B | – |
| P/E (trailing) | 12.8 | – |
| Dividend yield | 13.32% | 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 | IIPR | SPY |
|---|---|---|
| 2022 | -59.0% | -18.2% |
| 2023 | +8.8% | +26.2% |
| 2024 | -28.5% | +24.9% |
| 2025 | -18.4% | +17.7% |
| 2026 | +27.6% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IIPR and SPY good diversifiers for each other?
Reasonably. At 0.31, IIPR and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between IIPR and SPY?
The IIPR/SPY correlation stands at 0.31 on a 3-year window (1 year: 0.17, 5 years: 0.45), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for IIPR?
Reasonably. At 0.31, IIPR and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.31 mean?
A reading of 0.31 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: IIPR correlations · SPY correlations
