PSMT vs SPY: Correlation
Measured on weekly returns over the past three years, PriceSmart, Inc. (PSMT) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.26, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PSMT and SPY?
Across a 3-year window, the weekly returns of PSMT and SPY correlate at 0.26, weak. The past 12 months show a weaker link (0.12) than the 3-year average (0.26). Stretching to 5 years gives 0.36, with an annualized covariance of 87.6 %².
Within PSMT's tracked universe of 13 assets, SPY comes in at #8 by 3-year correlation. Correlation aside, the last 12 months split them widely, with PSMT ahead by 38.5 points (+59.1% versus +20.6%). Note the risk asymmetry: PSMT 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.
PSMT vs SPY: side by side
| PSMT (PriceSmart, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +59.1% | +20.6% |
| 5-year return | +116.4% | +82.4% |
| Volatility (ann.) | 23.4% | 14.5% |
| Beta vs S&P 500 | 0.42 | 1.00 |
| Max drawdown (3Y) | -24.0% | -18.8% |
| Market cap | $5.3B | – |
| P/E (trailing) | 33.8 | – |
| Dividend yield | 0.76% | 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 | PSMT | SPY |
|---|---|---|
| 2022 | -15.9% | -18.2% |
| 2023 | +26.2% | +26.2% |
| 2024 | +25.0% | +24.9% |
| 2025 | +34.8% | +17.7% |
| 2026 | +42.2% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PSMT and SPY good diversifiers for each other?
Reasonably. At 0.26, PSMT and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between PSMT and SPY?
The PSMT/SPY correlation stands at 0.26 on a 3-year window (1 year: 0.12, 5 years: 0.36), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for PSMT?
Reasonably. At 0.26, PSMT and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.26 mean?
A reading of 0.26 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: PSMT correlations · SPY correlations
