KREF vs SPY: Correlation
How closely do KKR Real Estate Finance Trust Inc. (KREF) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.30, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KREF and SPY?
Across a 3-year window, the weekly returns of KREF and SPY correlate at 0.30, moderate. Little has changed lately, as the 1-year reading of 0.37 lands near the 3-year figure. Stretching to 5 years gives 0.43, with an annualized covariance of 138.4 %².
By 3-year correlation, SPY places #8 of the 13 assets tracked against KREF. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 30.6 percentage points (-10.0% for KREF against +20.6% for SPY). Note the risk asymmetry: KREF runs 2.2 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.
KREF vs SPY: side by side
| KREF (KKR Real Estate Finance Trust Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -10.0% | +20.6% |
| 5-year return | -38.4% | +82.4% |
| Volatility (ann.) | 32.2% | 14.5% |
| Beta vs S&P 500 | 0.66 | 1.00 |
| Max drawdown (3Y) | -44.9% | -18.8% |
| Market cap | $0.5B | – |
| P/E (trailing) | – | – |
| Dividend yield | 11.26% | 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 | KREF | SPY |
|---|---|---|
| 2022 | -25.9% | -18.2% |
| 2023 | +9.2% | +26.2% |
| 2024 | -15.8% | +24.9% |
| 2025 | -9.3% | +17.7% |
| 2026 | -2.2% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KREF and SPY good diversifiers for each other?
A fair diversifier. At 0.30, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between KREF and SPY?
The KREF/SPY correlation stands at 0.30 on a 3-year window (1 year: 0.37, 5 years: 0.43), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for KREF?
A fair diversifier. At 0.30, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.30 mean?
On the −1 to +1 scale, 0.30 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: KREF correlations · SPY correlations
