PANW vs SPY: Correlation
How closely do Palo Alto Networks (PANW) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.45, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PANW and SPY?
Across a 3-year window, the weekly returns of PANW and SPY correlate at 0.45, moderate. The relationship has been stable: the 1-year correlation (0.38) sits close to the 3-year figure. Stretching to 5 years gives 0.48, with an annualized covariance of 275.5 %².
By 3-year correlation, SPY places #17 of the 30 assets tracked against PANW. Correlation aside, the last 12 months split them widely, with PANW ahead by 83.5 points (+104.1% versus +20.6%). On a rolling one-year basis the correlation drifted between 0.30 and 0.76, a moderate band. Note the risk asymmetry: PANW runs 2.9 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.
PANW vs SPY: side by side
| PANW (Palo Alto Networks) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +104.1% | +20.6% |
| 5-year return | +400.7% | +82.4% |
| Volatility (ann.) | 42.0% | 14.5% |
| Beta vs S&P 500 | 1.32 | 1.00 |
| Max drawdown (3Y) | -36.0% | -18.8% |
| Market cap | $312.0B | – |
| P/E (trailing) | 294.5 | – |
| Dividend yield | 0.00% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Information Technology | 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 | PANW | SPY |
|---|---|---|
| 2022 | -24.8% | -18.2% |
| 2023 | +111.3% | +26.2% |
| 2024 | +23.4% | +24.9% |
| 2025 | +1.2% | +17.7% |
| 2026 | +107.8% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
PANW represents 0.42% of SPY's portfolio, so part of any move in SPY is PANW itself, and the correlation between them is partly mechanical.
Are PANW and SPY good diversifiers for each other?
A fair diversifier. At 0.45, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between PANW and SPY?
As of 2026-08-27, the correlation of weekly returns between PANW and SPY is 0.45 over 3 years, 0.38 over 1 year and 0.48 over 5 years.
Is SPY a good diversifier for PANW?
A fair diversifier. At 0.45, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.45 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: PANW correlations · SPY correlations
