NOC vs SPY: Correlation
Northrop Grumman (NOC) and SPDR S&P 500 ETF Trust (SPY) show a weak relationship: their 3-year correlation of weekly returns is 0.13.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NOC and SPY?
On 3 years of weekly data the NOC/SPY correlation comes out at 0.13, weak. Recent behaviour matches the longer record: 0.16 over 1 year against 0.13 over 3. The 5-year figure is 0.18, and annualized covariance runs at 50.9 %².
By 3-year correlation, SPY places #18 of the 30 assets tracked against NOC. Correlation aside, the last 12 months split them widely, with SPY ahead by 26.2 points (-5.6% versus +20.6%). On a rolling one-year basis the correlation drifted between -0.16 and 0.33, a moderate band. Risk is not evenly split, since NOC carries 1.8 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.
NOC vs SPY: side by side
| NOC (Northrop Grumman) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -5.6% | +20.6% |
| 5-year return | +60.1% | +82.4% |
| Volatility (ann.) | 26.7% | 14.5% |
| Beta vs S&P 500 | 0.24 | 1.00 |
| Max drawdown (3Y) | -35.1% | -18.8% |
| Market cap | $77.4B | – |
| P/E (trailing) | 17.5 | – |
| Dividend yield | 1.71% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Industrials | 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 | NOC | SPY |
|---|---|---|
| 2022 | +43.0% | -18.2% |
| 2023 | -12.8% | +26.2% |
| 2024 | +1.9% | +24.9% |
| 2025 | +23.6% | +17.7% |
| 2026 | -3.7% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that SPY holds NOC at a 0.11% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are NOC and SPY good diversifiers for each other?
By historical standards, yes. A correlation of 0.13 means the two rarely move for the same reasons.
FAQ
What is the correlation between NOC and SPY?
The NOC/SPY correlation stands at 0.13 on a 3-year window (1 year: 0.16, 5 years: 0.18), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for NOC?
By historical standards, yes. A correlation of 0.13 means the two rarely move for the same reasons.
What does a correlation of 0.13 mean?
A reading of 0.13 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: NOC correlations · SPY correlations
