KMI vs SPY: Correlation
How closely do Kinder Morgan (KMI) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.19, which is weak.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KMI and SPY?
On 3 years of weekly data the KMI/SPY correlation comes out at 0.19, weak. Lately the two have drifted apart, with the 1-year correlation at -0.27 versus 0.19 over 3 years. The 5-year figure is 0.33, and annualized covariance runs at 61.6 %².
Within KMI's tracked universe of 33 assets, SPY comes in at #22 by 3-year correlation. Neither side won the trailing year by much: +22.3% against +20.6%. The relationship is regime-dependent: the rolling one-year correlation swung between -0.37 and 0.65 over the past three years, so this pair behaves very differently depending on the market environment. Risk is not evenly split, since KMI carries 1.5 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.
KMI vs SPY: side by side
| KMI (Kinder Morgan) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +22.3% | +20.6% |
| 5-year return | +153.0% | +82.4% |
| Volatility (ann.) | 22.1% | 14.5% |
| Beta vs S&P 500 | 0.29 | 1.00 |
| Max drawdown (3Y) | -18.4% | -18.8% |
| Market cap | $70.2B | – |
| P/E (trailing) | 20.6 | – |
| Dividend yield | 3.69% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Energy | 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 | KMI | SPY |
|---|---|---|
| 2022 | +21.2% | -18.2% |
| 2023 | +4.1% | +26.2% |
| 2024 | +64.4% | +24.9% |
| 2025 | +4.8% | +17.7% |
| 2026 | +18.0% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that SPY holds KMI at a 0.09% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are KMI and SPY good diversifiers for each other?
Yes: at 0.19, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between KMI and SPY?
The KMI/SPY correlation stands at 0.19 on a 3-year window (1 year: -0.27, 5 years: 0.33), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for KMI?
Yes: at 0.19, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of 0.19 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: KMI correlations · SPY correlations
