NXT vs SPY: Correlation
Measured on weekly returns over the past three years, Nextpower Inc. (NXT) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.33, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NXT and SPY?
Over the past 3 years, NXT and SPY moved with a correlation of 0.33, which is moderate. Little has changed lately, as the 1-year reading of 0.27 lands near the 3-year figure. Over 5 years the correlation is n/a, and the annualized covariance of weekly returns is 296.1 %².
SPY is close to the least connected end of NXT's tracked universe, ranking #8 of 11. The trailing year gives NXT the advantage: +32.3% versus +20.6%, a 11.7-point spread. Note the risk asymmetry: NXT runs 4.3 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.
NXT vs SPY: side by side
| NXT (Nextpower Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +32.3% | +20.6% |
| 5-year return | n/a | +82.4% |
| Volatility (ann.) | 62.6% | 14.5% |
| Beta vs S&P 500 | 1.42 | 1.00 |
| Max drawdown (3Y) | -48.6% | -18.8% |
| Market cap | $13.8B | – |
| P/E (trailing) | 22.5 | – |
| 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 | NXT | SPY |
|---|---|---|
| 2022 | – | -18.2% |
| 2023 | – | +26.2% |
| 2024 | -22.0% | +24.9% |
| 2025 | +138.5% | +17.7% |
| 2026 | +2.8% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NXT and SPY good diversifiers for each other?
A fair diversifier. At 0.33, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between NXT and SPY?
The NXT/SPY correlation stands at 0.33 on a 3-year window (1 year: 0.27, 5 years: n/a), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for NXT?
A fair diversifier. At 0.33, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.33 mean?
A reading of 0.33 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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Hubs: NXT correlations · SPY correlations
