RAIL vs SPY: Correlation
Measured on weekly returns over the past three years, Freightcar America, Inc. (RAIL) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.35, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RAIL and SPY?
On 3 years of weekly data the RAIL/SPY correlation comes out at 0.35, moderate. The past 12 months show a weaker link (0.17) than the 3-year average (0.35). The 5-year figure is 0.33, and annualized covariance runs at 385.3 %².
Out of 11 assets tracked against RAIL, SPY lands near the bottom at #7. Correlation aside, the last 12 months split them widely, with SPY ahead by 36.7 points (-16.1% versus +20.6%). Note the risk asymmetry: RAIL runs 5.2 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.
RAIL vs SPY: side by side
| RAIL (Freightcar America, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -16.1% | +20.6% |
| 5-year return | +36.6% | +82.4% |
| Volatility (ann.) | 75.3% | 14.5% |
| Beta vs S&P 500 | 1.84 | 1.00 |
| Max drawdown (3Y) | -71.7% | -18.8% |
| Market cap | $0.2B | – |
| 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 | RAIL | SPY |
|---|---|---|
| 2022 | -13.3% | -18.2% |
| 2023 | -15.6% | +26.2% |
| 2024 | +231.9% | +24.9% |
| 2025 | +23.5% | +17.7% |
| 2026 | -34.6% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RAIL and SPY good diversifiers for each other?
Reasonably. At 0.35, RAIL and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between RAIL and SPY?
As of 2026-08-27, the correlation of weekly returns between RAIL and SPY is 0.35 over 3 years, 0.17 over 1 year and 0.33 over 5 years.
Is SPY a good diversifier for RAIL?
Reasonably. At 0.35, RAIL and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.35 mean?
On the −1 to +1 scale, 0.35 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: RAIL correlations · SPY correlations
