LECO vs SPY: Correlation
How closely do Lincoln Electric Holdings, Inc. (LECO) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.54, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LECO and SPY?
Over the past 3 years, LECO and SPY moved with a correlation of 0.54, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.40 versus 0.54 over 3 years. Over 5 years the correlation is 0.59, and the annualized covariance of weekly returns is 216.2 %².
By 3-year correlation, SPY places #12 of the 18 assets tracked against LECO. Twelve-month performance is nearly a tie, at +18.4% for LECO and +20.6% for SPY. One caveat on sizing: LECO is 1.9 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.
LECO vs SPY: side by side
| LECO (Lincoln Electric Holdings, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +18.4% | +20.6% |
| 5-year return | +120.5% | +82.4% |
| Volatility (ann.) | 27.9% | 14.5% |
| Beta vs S&P 500 | 1.03 | 1.00 |
| Max drawdown (3Y) | -34.3% | -18.8% |
| Market cap | $15.8B | – |
| P/E (trailing) | 29.0 | – |
| Dividend yield | 1.08% | 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 | LECO | SPY |
|---|---|---|
| 2022 | +5.4% | -18.2% |
| 2023 | +52.6% | +26.2% |
| 2024 | -12.6% | +24.9% |
| 2025 | +29.6% | +17.7% |
| 2026 | +21.7% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LECO and SPY good diversifiers for each other?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between LECO and SPY?
The LECO/SPY correlation stands at 0.54 on a 3-year window (1 year: 0.40, 5 years: 0.59), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for LECO?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.54 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: LECO correlations · SPY correlations
