LOCO vs SPY: Correlation
El Pollo Loco Holdings, Inc. (LOCO) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.35.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LOCO and SPY?
Over the past 3 years, LOCO and SPY moved with a correlation of 0.35, which is moderate. The link has loosened recently: the 1-year correlation (-0.02) runs below the 3-year figure (0.35). Over 5 years the correlation is 0.34, and the annualized covariance of weekly returns is 171.8 %².
Within LOCO's tracked universe of 12 assets, SPY comes in at #7 by 3-year correlation. The last year tells two different stories: LOCO led by 21.7 percentage points, +42.3% for LOCO against +20.6% for SPY. Note the risk asymmetry: LOCO runs 2.3 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.
LOCO vs SPY: side by side
| LOCO (El Pollo Loco Holdings, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +42.3% | +20.6% |
| 5-year return | -3.0% | +82.4% |
| Volatility (ann.) | 33.9% | 14.5% |
| Beta vs S&P 500 | 0.82 | 1.00 |
| Max drawdown (3Y) | -35.9% | -18.8% |
| Market cap | $0.5B | – |
| P/E (trailing) | 13.3 | – |
| 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 | LOCO | SPY |
|---|---|---|
| 2022 | -19.0% | -18.2% |
| 2023 | -11.4% | +26.2% |
| 2024 | +30.8% | +24.9% |
| 2025 | -9.4% | +17.7% |
| 2026 | +45.3% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LOCO and SPY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.35 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between LOCO and SPY?
Using weekly returns as of 2026-08-27: 0.35 over 3 years, with -0.02 over the last year and 0.34 over 5 years.
Is SPY a good diversifier for LOCO?
Yes, to a useful degree: a correlation of 0.35 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.35 mean?
A reading of 0.35 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: LOCO correlations · SPY correlations
