NEXT vs SPY: Correlation
Measured on weekly returns over the past three years, NextDecade Corporation (NEXT) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.18, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NEXT and SPY?
Across a 3-year window, the weekly returns of NEXT and SPY correlate at 0.18, weak. The link has loosened recently: the 1-year correlation (-0.25) runs below the 3-year figure (0.18). Stretching to 5 years gives 0.24, with an annualized covariance of 164.9 %².
Within NEXT's tracked universe of 12 assets, SPY comes in at #7 by 3-year correlation. The last year tells two different stories: SPY led by 50.5 percentage points, -29.9% for NEXT against +20.6% for SPY. Risk is not evenly split, since NEXT carries 4.4 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.
NEXT vs SPY: side by side
| NEXT (NextDecade Corporation) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -29.9% | +20.6% |
| 5-year return | +136.2% | +82.4% |
| Volatility (ann.) | 64.4% | 14.5% |
| Beta vs S&P 500 | 0.79 | 1.00 |
| Max drawdown (3Y) | -60.0% | -18.8% |
| Market cap | $2.0B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 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 | NEXT | SPY |
|---|---|---|
| 2022 | +73.3% | -18.2% |
| 2023 | -3.4% | +26.2% |
| 2024 | +61.6% | +24.9% |
| 2025 | -31.6% | +17.7% |
| 2026 | +41.2% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NEXT and SPY good diversifiers for each other?
Yes. With a correlation of 0.18, NEXT and SPY have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between NEXT and SPY?
As of 2026-08-27, the correlation of weekly returns between NEXT and SPY is 0.18 over 3 years, -0.25 over 1 year and 0.24 over 5 years.
Is SPY a good diversifier for NEXT?
Yes. With a correlation of 0.18, NEXT and SPY have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of 0.18 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: NEXT correlations · SPY correlations
