MCO vs SPY: Correlation
How closely do Moody's Corporation (MCO) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.61, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MCO and SPY?
Across a 3-year window, the weekly returns of MCO and SPY correlate at 0.61, strong. The past 12 months show a weaker link (0.30) than the 3-year average (0.61). Stretching to 5 years gives 0.71, with an annualized covariance of 226.2 %².
Among the 53 assets we track against MCO, SPY ranks #14 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 19.9 percentage points (+0.7% for MCO against +20.6% for SPY). The relationship is regime-dependent: the rolling one-year correlation swung between 0.32 and 0.88 over the past three years, so this pair behaves very differently depending on the market environment. Note the risk asymmetry: MCO runs 1.8 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.
MCO vs SPY: side by side
| MCO (Moody's Corporation) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +0.7% | +20.6% |
| 5-year return | +39.4% | +82.4% |
| Volatility (ann.) | 25.8% | 14.5% |
| Beta vs S&P 500 | 1.08 | 1.00 |
| Max drawdown (3Y) | -24.7% | -18.8% |
| Market cap | $88.2B | – |
| P/E (trailing) | 32.7 | – |
| Dividend yield | 0.77% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Financials | 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 | MCO | SPY |
|---|---|---|
| 2022 | -28.0% | -18.2% |
| 2023 | +41.5% | +26.2% |
| 2024 | +22.2% | +24.9% |
| 2025 | +8.7% | +17.7% |
| 2026 | +0.3% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that SPY holds MCO at a 0.12% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are MCO and SPY good diversifiers for each other?
Somewhat, no more. With 0.61 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between MCO and SPY?
Using weekly returns as of 2026-08-27: 0.61 over 3 years, with 0.30 over the last year and 0.71 over 5 years.
Is SPY a good diversifier for MCO?
Somewhat, no more. With 0.61 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.61 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: MCO correlations · SPY correlations
