O vs SPY: Correlation
Measured on weekly returns over the past three years, Realty Income (O) 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 O and SPY?
On 3 years of weekly data the O/SPY correlation comes out at 0.18, weak. The relationship has been stable: the 1-year correlation (0.14) sits close to the 3-year figure. The 5-year figure is 0.38, and annualized covariance runs at 44.3 %².
By 3-year correlation, SPY places #33 of the 44 assets tracked against O. Over the last 12 months SPY came out ahead by 9.3 percentage points (+11.3% against +20.6%). This link changes with the market regime, having swung between 0.01 and 0.70 on a rolling one-year basis.
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.
O vs SPY: side by side
| O (Realty Income) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +11.3% | +20.6% |
| 5-year return | +14.5% | +82.4% |
| Volatility (ann.) | 17.3% | 14.5% |
| Beta vs S&P 500 | 0.21 | 1.00 |
| Max drawdown (3Y) | -19.3% | -18.8% |
| Market cap | $58.5B | – |
| P/E (trailing) | 45.4 | – |
| Dividend yield | 5.20% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Real Estate | 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 | O | SPY |
|---|---|---|
| 2022 | -7.4% | -18.2% |
| 2023 | -4.5% | +26.2% |
| 2024 | -2.1% | +24.9% |
| 2025 | +12.2% | +17.7% |
| 2026 | +13.0% | +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 O at a 0.09% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are O and SPY good diversifiers for each other?
Yes. With a correlation of 0.18, O and SPY have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between O and SPY?
As of 2026-08-27, the correlation of weekly returns between O and SPY is 0.18 over 3 years, 0.14 over 1 year and 0.38 over 5 years.
Is SPY a good diversifier for O?
Yes. With a correlation of 0.18, O 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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Hubs: O correlations · SPY correlations
