ROOT vs SPY: Correlation
Measured on weekly returns over the past three years, Root, Inc. (ROOT) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.16, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ROOT and SPY?
On 3 years of weekly data the ROOT/SPY correlation comes out at 0.16, weak. The link has tightened recently: the 1-year correlation (0.37) runs above the 3-year figure (0.16). The 5-year figure is 0.24, and annualized covariance runs at 302.5 %².
SPY is close to the least connected end of ROOT's tracked universe, ranking #7 of 11. The last year tells two different stories: SPY led by 58.7 percentage points, -38.1% for ROOT against +20.6% for SPY. One caveat on sizing: ROOT is 8.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
ROOT vs SPY: side by side
| ROOT (Root, Inc.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -38.1% | +20.6% |
| 5-year return | -52.1% | +82.4% |
| Volatility (ann.) | 127.9% | 14.5% |
| Beta vs S&P 500 | 1.45 | 1.00 |
| Max drawdown (3Y) | -75.7% | -18.8% |
| Market cap | $0.9B | – |
| P/E (trailing) | 16.3 | – |
| 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 | ROOT | SPY |
|---|---|---|
| 2022 | -92.0% | -18.2% |
| 2023 | +133.4% | +26.2% |
| 2024 | +592.7% | +24.9% |
| 2025 | -0.5% | +17.7% |
| 2026 | -23.8% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ROOT and SPY good diversifiers for each other?
Yes: at 0.16, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between ROOT and SPY?
Using weekly returns as of 2026-08-27: 0.16 over 3 years, with 0.37 over the last year and 0.24 over 5 years.
Is SPY a good diversifier for ROOT?
Yes: at 0.16, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of 0.16 mean?
On the −1 to +1 scale, 0.16 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: ROOT correlations · SPY correlations
