PGY vs SPY: Correlation
How closely do Pagaya Technologies Ltd. - Class A (PGY) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.42, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PGY and SPY?
On 3 years of weekly data the PGY/SPY correlation comes out at 0.42, moderate. The link has tightened recently: the 1-year correlation (0.53) runs above the 3-year figure (0.42). The 5-year figure is 0.30, and annualized covariance runs at 520.0 %².
Within PGY's tracked universe of 11 assets, SPY comes in at #6 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 53.6 percentage points (-33.0% for PGY against +20.6% for SPY). Risk is not evenly split, since PGY carries 5.9 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.
PGY vs SPY: side by side
| PGY (Pagaya Technologies Ltd. - Class A) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -33.0% | +20.6% |
| 5-year return | -79.9% | +82.4% |
| Volatility (ann.) | 86.1% | 14.5% |
| Beta vs S&P 500 | 2.49 | 1.00 |
| Max drawdown (3Y) | -75.7% | -18.8% |
| Market cap | $1.9B | – |
| P/E (trailing) | 15.9 | – |
| 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 | PGY | SPY |
|---|---|---|
| 2022 | -87.5% | -18.2% |
| 2023 | +11.3% | +26.2% |
| 2024 | -43.9% | +24.9% |
| 2025 | +125.0% | +17.7% |
| 2026 | +11.3% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PGY and SPY good diversifiers for each other?
A fair diversifier. At 0.42, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between PGY and SPY?
As of 2026-08-27, the correlation of weekly returns between PGY and SPY is 0.42 over 3 years, 0.53 over 1 year and 0.30 over 5 years.
Is SPY a good diversifier for PGY?
A fair diversifier. At 0.42, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.42 mean?
A reading of 0.42 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: PGY correlations · SPY correlations
