KMT vs SPY: Correlation
How closely do Kennametal Inc. (KMT) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.31, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KMT and SPY?
On 3 years of weekly data the KMT/SPY correlation comes out at 0.31, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.01 versus 0.31 over 3 years. The 5-year figure is 0.50, and annualized covariance runs at 152.3 %².
Out of 21 assets tracked against KMT, SPY lands near the bottom at #17. The last year tells two different stories: KMT led by 22.7 percentage points, +43.3% for KMT against +20.6% for SPY. Risk is not evenly split, since KMT carries 2.3 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.
KMT vs SPY: side by side
| KMT (Kennametal Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +43.3% | +20.6% |
| 5-year return | -6.6% | +82.4% |
| Volatility (ann.) | 33.9% | 14.5% |
| Beta vs S&P 500 | 0.73 | 1.00 |
| Max drawdown (3Y) | -42.9% | -18.8% |
| Market cap | $2.3B | – |
| P/E (trailing) | 6.8 | – |
| Dividend yield | 2.67% | 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 | KMT | SPY |
|---|---|---|
| 2022 | -31.0% | -18.2% |
| 2023 | +10.5% | +26.2% |
| 2024 | -3.9% | +24.9% |
| 2025 | +22.6% | +17.7% |
| 2026 | +8.1% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KMT and SPY good diversifiers for each other?
A fair diversifier. At 0.31, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between KMT and SPY?
As of 2026-08-27, the correlation of weekly returns between KMT and SPY is 0.31 over 3 years, 0.01 over 1 year and 0.50 over 5 years.
Is SPY a good diversifier for KMT?
A fair diversifier. At 0.31, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.31 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: KMT correlations · SPY correlations
