NDAQ vs SPY: Correlation
Nasdaq, Inc. (NDAQ) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.50.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NDAQ and SPY?
Across a 3-year window, the weekly returns of NDAQ and SPY correlate at 0.50, moderate. The link has loosened recently: the 1-year correlation (0.30) runs below the 3-year figure (0.50). Stretching to 5 years gives 0.60, with an annualized covariance of 166.8 %².
Among the 35 assets we track against NDAQ, SPY ranks #17 by 3-year correlation. On 12-month performance SPY holds a 14.5-point edge, +6.1% against +20.6%. The rolling one-year correlation moved between 0.30 and 0.75 over the past three years, a moderate range. Note the risk asymmetry: NDAQ runs 1.6 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.
NDAQ vs SPY: side by side
| NDAQ (Nasdaq, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +6.1% | +20.6% |
| 5-year return | +64.4% | +82.4% |
| Volatility (ann.) | 23.2% | 14.5% |
| Beta vs S&P 500 | 0.80 | 1.00 |
| Max drawdown (3Y) | -23.4% | -18.8% |
| Market cap | $55.5B | – |
| P/E (trailing) | 29.0 | – |
| Dividend yield | 1.13% | 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 | NDAQ | SPY |
|---|---|---|
| 2022 | -11.2% | -18.2% |
| 2023 | -3.7% | +26.2% |
| 2024 | +34.8% | +24.9% |
| 2025 | +27.2% | +17.7% |
| 2026 | +3.0% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
NDAQ represents 0.07% of SPY's portfolio, so part of any move in SPY is NDAQ itself, and the correlation between them is partly mechanical.
Are NDAQ and SPY good diversifiers for each other?
To a limited degree. At 0.50 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between NDAQ and SPY?
Using weekly returns as of 2026-08-27: 0.50 over 3 years, with 0.30 over the last year and 0.60 over 5 years.
Is SPY a good diversifier for NDAQ?
To a limited degree. At 0.50 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.50 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: NDAQ correlations · SPY correlations
