RLJ vs SPY: Correlation
RLJ Lodging Trust (RLJ) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.40.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RLJ and SPY?
On 3 years of weekly data the RLJ/SPY correlation comes out at 0.40, moderate. Lately the two have drifted apart, with the 1-year correlation at -0.08 versus 0.40 over 3 years. The 5-year figure is 0.51, and annualized covariance runs at 157.8 %².
By 3-year correlation, SPY places #12 of the 17 assets tracked against RLJ. The last year tells two different stories: RLJ led by 36.2 percentage points, +56.8% for RLJ against +20.6% for SPY. Risk is not evenly split, since RLJ carries 1.9 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.
RLJ vs SPY: side by side
| RLJ (RLJ Lodging Trust) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +56.8% | +20.6% |
| 5-year return | -2.6% | +82.4% |
| Volatility (ann.) | 27.0% | 14.5% |
| Beta vs S&P 500 | 0.76 | 1.00 |
| Max drawdown (3Y) | -44.2% | -18.8% |
| Market cap | $1.7B | – |
| P/E (trailing) | 1138.0 | – |
| Dividend yield | 5.24% | 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 | RLJ | SPY |
|---|---|---|
| 2022 | -23.1% | -18.2% |
| 2023 | +14.6% | +26.2% |
| 2024 | -8.4% | +24.9% |
| 2025 | -21.0% | +17.7% |
| 2026 | +57.9% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RLJ and SPY good diversifiers for each other?
Reasonably. At 0.40, RLJ and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between RLJ and SPY?
As of 2026-08-27, the correlation of weekly returns between RLJ and SPY is 0.40 over 3 years, -0.08 over 1 year and 0.51 over 5 years.
Is SPY a good diversifier for RLJ?
Reasonably. At 0.40, RLJ and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.40 mean?
On the −1 to +1 scale, 0.40 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: RLJ correlations · SPY correlations
