PSEC vs SPY: Correlation
Measured on weekly returns over the past three years, Prospect Capital Corporation - Closed End Fund (PSEC) 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 PSEC and SPY?
On 3 years of weekly data the PSEC/SPY correlation comes out at 0.27, weak. The past 12 months show a weaker link (0.15) than the 3-year average (0.27). The 5-year figure is 0.42, and annualized covariance runs at 124.2 %².
Out of 12 assets tracked against PSEC, SPY lands near the bottom at #8. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 26.4 percentage points (-5.8% for PSEC against +20.6% for SPY). One caveat on sizing: PSEC is 2.2 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.
PSEC vs SPY: side by side
| PSEC (Prospect Capital Corporation - Closed End Fund) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -5.8% | +20.6% |
| 5-year return | -45.5% | +82.4% |
| Volatility (ann.) | 31.6% | 14.5% |
| Beta vs S&P 500 | 0.59 | 1.00 |
| Max drawdown (3Y) | -50.5% | -18.8% |
| Market cap | $1.2B | – |
| P/E (trailing) | 38.0 | – |
| Dividend yield | 25.97% | 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 | PSEC | SPY |
|---|---|---|
| 2022 | -8.6% | -18.2% |
| 2023 | -4.1% | +26.2% |
| 2024 | -18.2% | +24.9% |
| 2025 | -28.9% | +17.7% |
| 2026 | -1.5% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PSEC 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 PSEC and SPY?
The PSEC/SPY correlation stands at 0.27 on a 3-year window (1 year: 0.15, 5 years: 0.42), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for PSEC?
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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/psec-vs-spy.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/psec-vs-spy/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: PSEC correlations · SPY correlations
