PYPL vs SPY: Correlation
How closely do PayPal (PYPL) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.45, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PYPL and SPY?
Across a 3-year window, the weekly returns of PYPL and SPY correlate at 0.45, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.17 versus 0.45 over 3 years. Stretching to 5 years gives 0.53, with an annualized covariance of 240.9 %².
By 3-year correlation, SPY places #16 of the 28 assets tracked against PYPL. Correlation aside, the last 12 months split them widely, with SPY ahead by 31.6 points (-11.0% versus +20.6%). This link changes with the market regime, having swung between 0.17 and 0.69 on a rolling one-year basis. Risk is not evenly split, since PYPL carries 2.6 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.
PYPL vs SPY: side by side
| PYPL (PayPal) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -11.0% | +20.6% |
| 5-year return | -78.5% | +82.4% |
| Volatility (ann.) | 37.1% | 14.5% |
| Beta vs S&P 500 | 1.15 | 1.00 |
| Max drawdown (3Y) | -57.3% | -18.8% |
| Market cap | $52.6B | – |
| P/E (trailing) | 11.7 | – |
| Dividend yield | 0.91% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Financials | 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 | PYPL | SPY |
|---|---|---|
| 2022 | -62.2% | -18.2% |
| 2023 | -13.8% | +26.2% |
| 2024 | +39.0% | +24.9% |
| 2025 | -31.4% | +17.7% |
| 2026 | +6.0% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.08% of SPY is PYPL itself, so the fund partly moves with the stock by construction.
Are PYPL and SPY good diversifiers for each other?
A fair diversifier. At 0.45, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between PYPL and SPY?
As of 2026-08-27, the correlation of weekly returns between PYPL and SPY is 0.45 over 3 years, 0.17 over 1 year and 0.53 over 5 years.
Is SPY a good diversifier for PYPL?
A fair diversifier. At 0.45, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.45 mean?
A reading of 0.45 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: PYPL correlations · SPY correlations
