LDI vs SPY: Correlation
How closely do loanDepot, Inc. (LDI) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.25, which is weak.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LDI and SPY?
Across a 3-year window, the weekly returns of LDI and SPY correlate at 0.25, weak. The relationship has been stable: the 1-year correlation (0.35) sits close to the 3-year figure. Stretching to 5 years gives 0.34, with an annualized covariance of 307.9 %².
Out of 13 assets tracked against LDI, SPY lands near the bottom at #9. The last year tells two different stories: SPY led by 74.3 percentage points, -53.7% for LDI against +20.6% for SPY. One caveat on sizing: LDI is 5.9 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
LDI vs SPY: side by side
| LDI (loanDepot, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -53.7% | +20.6% |
| 5-year return | -87.7% | +82.4% |
| Volatility (ann.) | 85.9% | 14.5% |
| Beta vs S&P 500 | 1.47 | 1.00 |
| Max drawdown (3Y) | -81.3% | -18.8% |
| Market cap | $0.4B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 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 | LDI | SPY |
|---|---|---|
| 2022 | -64.9% | -18.2% |
| 2023 | +113.3% | +26.2% |
| 2024 | -42.0% | +24.9% |
| 2025 | +1.5% | +17.7% |
| 2026 | -53.0% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LDI and SPY good diversifiers for each other?
A fair diversifier. At 0.25, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between LDI and SPY?
As of 2026-08-27, the correlation of weekly returns between LDI and SPY is 0.25 over 3 years, 0.35 over 1 year and 0.34 over 5 years.
Is SPY a good diversifier for LDI?
A fair diversifier. At 0.25, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.25 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: LDI correlations · SPY correlations
