IR vs SPY: Correlation
How closely do Ingersoll Rand (IR) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.57, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IR and SPY?
On 3 years of weekly data the IR/SPY correlation comes out at 0.57, moderate. The link has loosened recently: the 1-year correlation (0.21) runs below the 3-year figure (0.57). The 5-year figure is 0.61, and annualized covariance runs at 245.0 %².
Within IR's tracked universe of 61 assets, SPY comes in at #36 by 3-year correlation. The last year tells two different stories: SPY led by 22.6 percentage points, -2.0% for IR against +20.6% for SPY. This link changes with the market regime, having swung between 0.21 and 0.76 on a rolling one-year basis. Note the risk asymmetry: IR runs 2.1 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.
IR vs SPY: side by side
| IR (Ingersoll Rand) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -2.0% | +20.6% |
| 5-year return | +49.2% | +82.4% |
| Volatility (ann.) | 29.8% | 14.5% |
| Beta vs S&P 500 | 1.17 | 1.00 |
| Max drawdown (3Y) | -36.6% | -18.8% |
| Market cap | $30.6B | – |
| P/E (trailing) | 32.6 | – |
| Dividend yield | 0.15% | 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 | IR | SPY |
|---|---|---|
| 2022 | -15.4% | -18.2% |
| 2023 | +48.2% | +26.2% |
| 2024 | +17.1% | +24.9% |
| 2025 | -12.3% | +17.7% |
| 2026 | -0.2% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IR and SPY good diversifiers for each other?
To a limited degree. At 0.57 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between IR and SPY?
Using weekly returns as of 2026-08-27: 0.57 over 3 years, with 0.21 over the last year and 0.61 over 5 years.
Is SPY a good diversifier for IR?
To a limited degree. At 0.57 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.57 mean?
A reading of 0.57 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: IR correlations · SPY correlations
