SCM vs SPY: Correlation
Stellus Capital Investment Corporation (SCM) 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 SCM and SPY?
Over the past 3 years, SCM and SPY moved with a correlation of 0.40, which is moderate. The relationship has been stable: the 1-year correlation (0.47) sits close to the 3-year figure. Over 5 years the correlation is 0.42, and the annualized covariance of weekly returns is 143.1 %².
Within SCM's tracked universe of 17 assets, SPY comes in at #11 by 3-year correlation. The last year tells two different stories: SPY led by 53.3 percentage points, -32.7% for SCM against +20.6% for SPY. Risk is not evenly split, since SCM carries 1.7 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.
SCM vs SPY: side by side
| SCM (Stellus Capital Investment Corporation) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -32.7% | +20.6% |
| 5-year return | +16.7% | +82.4% |
| Volatility (ann.) | 24.4% | 14.5% |
| Beta vs S&P 500 | 0.68 | 1.00 |
| Max drawdown (3Y) | -47.8% | -18.8% |
| Market cap | $0.2B | – |
| P/E (trailing) | 8.4 | – |
| Dividend yield | 17.12% | 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 | SCM | SPY |
|---|---|---|
| 2022 | +12.9% | -18.2% |
| 2023 | +8.7% | +26.2% |
| 2024 | +20.3% | +24.9% |
| 2025 | +3.7% | +17.7% |
| 2026 | -26.0% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SCM and SPY good diversifiers for each other?
A fair diversifier. At 0.40, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between SCM and SPY?
Using weekly returns as of 2026-08-27: 0.40 over 3 years, with 0.47 over the last year and 0.42 over 5 years.
Is SPY a good diversifier for SCM?
A fair diversifier. At 0.40, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.40 mean?
A reading of 0.40 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: SCM correlations · SPY correlations
