MO vs SPY: Correlation
How closely do Altria (MO) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of -0.05, which is near-zero.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MO and SPY?
Across a 3-year window, the weekly returns of MO and SPY correlate at -0.05, near zero, meaning they move largely independently. Lately the two have drifted apart, with the 1-year correlation at -0.29 versus -0.05 over 3 years. Stretching to 5 years gives 0.13, with an annualized covariance of -14.9 %².
Within MO's tracked universe of 49 assets, SPY comes in at #22 by 3-year correlation. On 12-month performance SPY holds a 11.8-point edge, +8.8% against +20.6%. The relationship is regime-dependent: the rolling one-year correlation swung between -0.29 and 0.43 over the past three years, so this pair behaves very differently depending on the market environment. Risk is not evenly split, since MO carries 1.5 times the volatility of the other side.
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.
MO vs SPY: side by side
| MO (Altria) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +8.8% | +20.6% |
| 5-year return | +100.4% | +82.4% |
| Volatility (ann.) | 21.8% | 14.5% |
| Beta vs S&P 500 | -0.07 | 1.00 |
| Max drawdown (3Y) | -16.4% | -18.8% |
| Market cap | $113.0B | – |
| P/E (trailing) | 14.6 | – |
| Dividend yield | 6.13% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Consumer Staples | 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 | MO | SPY |
|---|---|---|
| 2022 | +4.4% | -18.2% |
| 2023 | -3.7% | +26.2% |
| 2024 | +40.8% | +24.9% |
| 2025 | +18.2% | +17.7% |
| 2026 | +21.1% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
MO represents 0.17% of SPY's portfolio, so part of any move in SPY is MO itself, and the correlation between them is partly mechanical.
Are MO and SPY good diversifiers for each other?
Yes. With a correlation of -0.05, MO and SPY have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between MO and SPY?
The MO/SPY correlation stands at -0.05 on a 3-year window (1 year: -0.29, 5 years: 0.13), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for MO?
Yes. With a correlation of -0.05, MO and SPY have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.05 mean?
A reading of -0.05 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: MO correlations · SPY correlations
