SDHC vs SPY: Correlation
Smith Douglas Homes Corp. (SDHC) and SPDR S&P 500 ETF Trust (SPY) show a moderate relationship: their 3-year correlation of weekly returns is 0.31.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SDHC and SPY?
Over the past 3 years, SDHC and SPY moved with a correlation of 0.31, which is moderate. The relationship has been stable: the 1-year correlation (0.25) sits close to the 3-year figure. Over 5 years the correlation is n/a, and the annualized covariance of weekly returns is 223.4 %².
SPY is close to the least connected end of SDHC's tracked universe, ranking #10 of 14. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 58.9 percentage points (-38.3% for SDHC against +20.6% for SPY). Risk is not evenly split, since SDHC carries 3.4 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.
SDHC vs SPY: side by side
| SDHC (Smith Douglas Homes Corp.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -38.3% | +20.6% |
| 5-year return | n/a | +82.4% |
| Volatility (ann.) | 49.6% | 14.5% |
| Beta vs S&P 500 | 1.07 | 1.00 |
| Max drawdown (3Y) | -72.0% | -18.8% |
| Market cap | $0.1B | – |
| P/E (trailing) | 16.9 | – |
| 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 | SDHC | SPY |
|---|---|---|
| 2022 | – | -18.2% |
| 2023 | – | +26.2% |
| 2024 | – | +24.9% |
| 2025 | -34.6% | +17.7% |
| 2026 | -27.5% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SDHC and SPY good diversifiers for each other?
Reasonably. At 0.31, SDHC and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between SDHC and SPY?
The SDHC/SPY correlation stands at 0.31 on a 3-year window (1 year: 0.25, 5 years: n/a), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for SDHC?
Reasonably. At 0.31, SDHC and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.31 mean?
A reading of 0.31 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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