LGND vs SPY: Correlation
Ligand Pharmaceuticals Incorporated (LGND) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.42.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LGND and SPY?
On 3 years of weekly data the LGND/SPY correlation comes out at 0.42, moderate. The past 12 months show a weaker link (0.24) than the 3-year average (0.42). The 5-year figure is 0.49, and annualized covariance runs at 213.3 %².
SPY is close to the least connected end of LGND's tracked universe, ranking #7 of 11. Their recent paths diverged sharply: over the last 12 months LGND outperformed by 58.2 percentage points (+78.8% for LGND against +20.6% for SPY). One caveat on sizing: LGND is 2.4 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.
LGND vs SPY: side by side
| LGND (Ligand Pharmaceuticals Incorporated) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +78.8% | +20.6% |
| 5-year return | +276.5% | +82.4% |
| Volatility (ann.) | 35.4% | 14.5% |
| Beta vs S&P 500 | 1.02 | 1.00 |
| Max drawdown (3Y) | -25.6% | -18.8% |
| Market cap | $5.7B | – |
| P/E (trailing) | 29.7 | – |
| 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 | LGND | SPY |
|---|---|---|
| 2022 | -30.7% | -18.2% |
| 2023 | +6.9% | +26.2% |
| 2024 | +50.0% | +24.9% |
| 2025 | +76.5% | +17.7% |
| 2026 | +50.5% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LGND and SPY good diversifiers for each other?
Reasonably. At 0.42, LGND and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between LGND and SPY?
Using weekly returns as of 2026-08-27: 0.42 over 3 years, with 0.24 over the last year and 0.49 over 5 years.
Is SPY a good diversifier for LGND?
Reasonably. At 0.42, LGND and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.42 mean?
On the −1 to +1 scale, 0.42 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: LGND correlations · SPY correlations
