PM vs SPY: Correlation
Measured on weekly returns over the past three years, Philip Morris International (PM) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of -0.01, a near-zero link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PM and SPY?
On 3 years of weekly data the PM/SPY correlation comes out at -0.01, near zero, meaning they move largely independently. Lately the two have drifted apart, with the 1-year correlation at -0.14 versus -0.01 over 3 years. The 5-year figure is 0.23, and annualized covariance runs at -2.5 %².
Among the 47 assets we track against PM, SPY ranks #21 by 3-year correlation. Neither side won the trailing year by much: +20.2% against +20.6%. The relationship is regime-dependent: the rolling one-year correlation swung between -0.34 and 0.60 over the past three years, so this pair behaves very differently depending on the market environment. Note the risk asymmetry: PM runs 1.6 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.
PM vs SPY: side by side
| PM (Philip Morris International) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +20.2% | +20.6% |
| 5-year return | +133.5% | +82.4% |
| Volatility (ann.) | 23.1% | 14.5% |
| Beta vs S&P 500 | -0.01 | 1.00 |
| Max drawdown (3Y) | -20.6% | -18.8% |
| Market cap | $296.9B | – |
| P/E (trailing) | 26.7 | – |
| Dividend yield | 3.03% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Consumer Staples | 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 | PM | SPY |
|---|---|---|
| 2022 | +12.3% | -18.2% |
| 2023 | -1.9% | +26.2% |
| 2024 | +34.3% | +24.9% |
| 2025 | +38.0% | +17.7% |
| 2026 | +20.8% | +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 PM at a 0.46% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are PM and SPY good diversifiers for each other?
Yes. With a correlation of -0.01, PM and SPY have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between PM and SPY?
Using weekly returns as of 2026-08-27: -0.01 over 3 years, with -0.14 over the last year and 0.23 over 5 years.
Is SPY a good diversifier for PM?
Yes. With a correlation of -0.01, PM and SPY have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.01 mean?
On the −1 to +1 scale, -0.01 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: PM correlations · SPY correlations
