RDDT vs SPY: Correlation
Measured on weekly returns over the past three years, Reddit (RDDT) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.48, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RDDT and SPY?
On 3 years of weekly data the RDDT/SPY correlation comes out at 0.48, moderate. The relationship has been stable: the 1-year correlation (0.51) sits close to the 3-year figure. The 5-year figure is n/a, and annualized covariance runs at 541.4 %².
Within RDDT's tracked universe of 40 assets, SPY comes in at #18 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 47.7 percentage points (-27.1% for RDDT against +20.6% for SPY). The rolling one-year correlation stayed in a tight band between 0.33 and 0.54 over the past three years, which points to a structural rather than episodic relationship. Note the risk asymmetry: RDDT 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.
RDDT vs SPY: side by side
| RDDT (Reddit) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -27.1% | +20.6% |
| 5-year return | n/a | +82.4% |
| Volatility (ann.) | 75.2% | 14.5% |
| Beta vs S&P 500 | 2.59 | 1.00 |
| Max drawdown (3Y) | -61.4% | -18.8% |
| Market cap | $29.6B | – |
| P/E (trailing) | 36.1 | – |
| Dividend yield | 0.00% | 1.01% |
| Expense ratio | – | 0.09% |
| Assets under management | – | $795.3B |
| Sector / category | Communication Services | 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 | RDDT | SPY |
|---|---|---|
| 2022 | – | -18.2% |
| 2023 | – | +26.2% |
| 2024 | – | +24.9% |
| 2025 | +40.6% | +17.7% |
| 2026 | -33.0% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RDDT and SPY good diversifiers for each other?
Reasonably. At 0.48, RDDT and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between RDDT and SPY?
The RDDT/SPY correlation stands at 0.48 on a 3-year window (1 year: 0.51, 5 years: n/a), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for RDDT?
Reasonably. At 0.48, RDDT and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.48 mean?
A reading of 0.48 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: RDDT correlations · SPY correlations
