PEG vs SPY: Correlation
Measured on weekly returns over the past three years, Public Service Enterprise Group (PEG) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.19, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PEG and SPY?
On 3 years of weekly data the PEG/SPY correlation comes out at 0.19, weak. Lately the two have drifted apart, with the 1-year correlation at -0.04 versus 0.19 over 3 years. The 5-year figure is 0.38, and annualized covariance runs at 52.3 %².
Within PEG's tracked universe of 32 assets, SPY comes in at #21 by 3-year correlation. The last year tells two different stories: SPY led by 29.2 percentage points, -8.6% for PEG against +20.6% for SPY. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.08 to 0.55.
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.
PEG vs SPY: side by side
| PEG (Public Service Enterprise Group) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -8.6% | +20.6% |
| 5-year return | +34.9% | +82.4% |
| Volatility (ann.) | 18.9% | 14.5% |
| Beta vs S&P 500 | 0.25 | 1.00 |
| Max drawdown (3Y) | -18.8% | -18.8% |
| Market cap | $36.5B | – |
| P/E (trailing) | 18.4 | – |
| Dividend yield | 3.51% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Utilities | 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 | PEG | SPY |
|---|---|---|
| 2022 | -5.1% | -18.2% |
| 2023 | +3.6% | +26.2% |
| 2024 | +42.6% | +24.9% |
| 2025 | -1.9% | +17.7% |
| 2026 | -7.1% | +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 PEG at a 0.06% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are PEG and SPY good diversifiers for each other?
Yes: at 0.19, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between PEG and SPY?
Using weekly returns as of 2026-08-27: 0.19 over 3 years, with -0.04 over the last year and 0.38 over 5 years.
Is SPY a good diversifier for PEG?
Yes: at 0.19, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of 0.19 mean?
A reading of 0.19 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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