MSM vs SPY: Correlation
MSC Industrial Direct Company, Inc. (MSM) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.44.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MSM and SPY?
On 3 years of weekly data the MSM/SPY correlation comes out at 0.44, moderate. The link has loosened recently: the 1-year correlation (0.16) runs below the 3-year figure (0.44). The 5-year figure is 0.53, and annualized covariance runs at 162.6 %².
Among the 17 assets we track against MSM, SPY ranks #12 by 3-year correlation. The last year tells two different stories: MSM led by 17.5 percentage points, +38.1% for MSM against +20.6% for SPY. Note the risk asymmetry: MSM runs 1.7 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.
MSM vs SPY: side by side
| MSM (MSC Industrial Direct Company, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +38.1% | +20.6% |
| 5-year return | +73.8% | +82.4% |
| Volatility (ann.) | 25.3% | 14.5% |
| Beta vs S&P 500 | 0.78 | 1.00 |
| Max drawdown (3Y) | -29.3% | -18.8% |
| Market cap | – | – |
| P/E (trailing) | 29.6 | – |
| Dividend yield | 2.84% | 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 | MSM | SPY |
|---|---|---|
| 2022 | +0.9% | -18.2% |
| 2023 | +28.5% | +26.2% |
| 2024 | -23.4% | +24.9% |
| 2025 | +17.4% | +17.7% |
| 2026 | +49.1% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MSM and SPY good diversifiers for each other?
A fair diversifier. At 0.44, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between MSM and SPY?
Using weekly returns as of 2026-08-27: 0.44 over 3 years, with 0.16 over the last year and 0.53 over 5 years.
Is SPY a good diversifier for MSM?
A fair diversifier. At 0.44, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.44 mean?
On the −1 to +1 scale, 0.44 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: MSM correlations · SPY correlations
