LW vs SPY: Correlation
Lamb Weston Holdings, Inc. (LW) and SPDR S&P 500 ETF Trust (SPY) show a weak relationship: their 3-year correlation of weekly returns is 0.15.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LW and SPY?
On 3 years of weekly data the LW/SPY correlation comes out at 0.15, weak. Recent behaviour matches the longer record: 0.11 over 1 year against 0.15 over 3. The 5-year figure is 0.22, and annualized covariance runs at 92.2 %².
Within LW's tracked universe of 17 assets, SPY comes in at #6 by 3-year correlation. Correlation aside, the last 12 months split them widely, with SPY ahead by 20.9 points (-0.3% versus +20.6%). Note the risk asymmetry: LW runs 3.0 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.
LW vs SPY: side by side
| LW (Lamb Weston Holdings, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -0.3% | +20.6% |
| 5-year return | -6.1% | +82.4% |
| Volatility (ann.) | 43.2% | 14.5% |
| Beta vs S&P 500 | 0.44 | 1.00 |
| Max drawdown (3Y) | -63.1% | -18.8% |
| Market cap | $7.5B | – |
| P/E (trailing) | 26.6 | – |
| Dividend yield | 2.71% | 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 | LW | SPY |
|---|---|---|
| 2022 | +42.9% | -18.2% |
| 2023 | +22.3% | +26.2% |
| 2024 | -37.0% | +24.9% |
| 2025 | -35.7% | +17.7% |
| 2026 | +34.1% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LW and SPY good diversifiers for each other?
Yes. With a correlation of 0.15, LW and SPY have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between LW and SPY?
Using weekly returns as of 2026-08-27: 0.15 over 3 years, with 0.11 over the last year and 0.22 over 5 years.
Is SPY a good diversifier for LW?
Yes. With a correlation of 0.15, LW and SPY have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of 0.15 mean?
On the −1 to +1 scale, 0.15 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: LW correlations · SPY correlations
