LOB vs SPY: Correlation
Live Oak Bancshares, Inc. (LOB) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.38.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LOB and SPY?
Over the past 3 years, LOB and SPY moved with a correlation of 0.38, which is moderate. The link has loosened recently: the 1-year correlation (0.21) runs below the 3-year figure (0.38). Over 5 years the correlation is 0.48, and the annualized covariance of weekly returns is 231.7 %².
SPY is close to the least connected end of LOB's tracked universe, ranking #7 of 11. The last year tells two different stories: SPY led by 16.8 percentage points, +3.8% for LOB against +20.6% for SPY. One caveat on sizing: LOB is 2.9 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.
LOB vs SPY: side by side
| LOB (Live Oak Bancshares, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +3.8% | +20.6% |
| 5-year return | -33.6% | +82.4% |
| Volatility (ann.) | 42.3% | 14.5% |
| Beta vs S&P 500 | 1.11 | 1.00 |
| Max drawdown (3Y) | -53.8% | -18.8% |
| Market cap | $1.9B | – |
| P/E (trailing) | 14.0 | – |
| Dividend yield | 0.30% | 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 | LOB | SPY |
|---|---|---|
| 2022 | -65.3% | -18.2% |
| 2023 | +51.3% | +26.2% |
| 2024 | -12.8% | +24.9% |
| 2025 | -12.8% | +17.7% |
| 2026 | +16.6% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LOB and SPY good diversifiers for each other?
A fair diversifier. At 0.38, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between LOB and SPY?
Using weekly returns as of 2026-08-27: 0.38 over 3 years, with 0.21 over the last year and 0.48 over 5 years.
Is SPY a good diversifier for LOB?
A fair diversifier. At 0.38, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.38 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: LOB correlations · SPY correlations
