MCY vs SPY: Correlation
Measured on weekly returns over the past three years, Mercury General Corporation (MCY) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.30, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MCY and SPY?
Across a 3-year window, the weekly returns of MCY and SPY correlate at 0.30, moderate. The link has loosened recently: the 1-year correlation (0.13) runs below the 3-year figure (0.30). Stretching to 5 years gives 0.28, with an annualized covariance of 156.7 %².
Among the 14 assets we track against MCY, SPY ranks #8 by 3-year correlation. The trailing year gives MCY the advantage: +34.1% versus +20.6%, a 13.5-point spread. One caveat on sizing: MCY is 2.5 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.
MCY vs SPY: side by side
| MCY (Mercury General Corporation) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +34.1% | +20.6% |
| 5-year return | +99.9% | +82.4% |
| Volatility (ann.) | 35.8% | 14.5% |
| Beta vs S&P 500 | 0.75 | 1.00 |
| Max drawdown (3Y) | -40.0% | -18.8% |
| Market cap | – | – |
| P/E (trailing) | 6.2 | – |
| Dividend yield | 1.21% | 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 | MCY | SPY |
|---|---|---|
| 2022 | -32.6% | -18.2% |
| 2023 | +13.6% | +26.2% |
| 2024 | +82.3% | +24.9% |
| 2025 | +44.1% | +17.7% |
| 2026 | +9.9% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MCY and SPY good diversifiers for each other?
A fair diversifier. At 0.30, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between MCY and SPY?
As of 2026-08-27, the correlation of weekly returns between MCY and SPY is 0.30 over 3 years, 0.13 over 1 year and 0.28 over 5 years.
Is SPY a good diversifier for MCY?
A fair diversifier. At 0.30, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.30 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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Hubs: MCY correlations · SPY correlations
