PRAA vs SPY: Correlation
Measured on weekly returns over the past three years, PRA Group, Inc. (PRAA) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.27, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PRAA and SPY?
Over the past 3 years, PRAA and SPY moved with a correlation of 0.27, which is weak. The link has loosened recently: the 1-year correlation (0.04) runs below the 3-year figure (0.27). Over 5 years the correlation is 0.28, and the annualized covariance of weekly returns is 240.3 %².
SPY is close to the least connected end of PRAA's tracked universe, ranking #11 of 15. The trailing year gives SPY the advantage: +12.9% versus +20.6%, a 7.7-point spread. One caveat on sizing: PRAA is 4.3 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
PRAA vs SPY: side by side
| PRAA (PRA Group, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +12.9% | +20.6% |
| 5-year return | -53.3% | +82.4% |
| Volatility (ann.) | 62.0% | 14.5% |
| Beta vs S&P 500 | 1.15 | 1.00 |
| Max drawdown (3Y) | -62.8% | -18.8% |
| Market cap | $0.7B | – |
| P/E (trailing) | – | – |
| 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 | PRAA | SPY |
|---|---|---|
| 2022 | -32.7% | -18.2% |
| 2023 | -22.4% | +26.2% |
| 2024 | -20.3% | +24.9% |
| 2025 | -15.3% | +17.7% |
| 2026 | +9.0% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PRAA and SPY good diversifiers for each other?
A fair diversifier. At 0.27, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between PRAA and SPY?
As of 2026-08-27, the correlation of weekly returns between PRAA and SPY is 0.27 over 3 years, 0.04 over 1 year and 0.28 over 5 years.
Is SPY a good diversifier for PRAA?
A fair diversifier. At 0.27, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.27 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: PRAA correlations · SPY correlations
