SFL vs SPY: Correlation
Measured on weekly returns over the past three years, SFL Corporation Ltd (SFL) and SPDR S&P 500 ETF Trust (SPY) carry a correlation of 0.28, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SFL and SPY?
Across a 3-year window, the weekly returns of SFL and SPY correlate at 0.28, weak. The link has loosened recently: the 1-year correlation (0.08) runs below the 3-year figure (0.28). Stretching to 5 years gives 0.28, with an annualized covariance of 111.7 %².
Within SFL's tracked universe of 12 assets, SPY comes in at #6 by 3-year correlation. The last year tells two different stories: SFL led by 34.8 percentage points, +55.4% for SFL against +20.6% for SPY. Note the risk asymmetry: SFL runs 1.9 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.
SFL vs SPY: side by side
| SFL (SFL Corporation Ltd) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +55.4% | +20.6% |
| 5-year return | +130.7% | +82.4% |
| Volatility (ann.) | 28.0% | 14.5% |
| Beta vs S&P 500 | 0.53 | 1.00 |
| Max drawdown (3Y) | -46.4% | -18.8% |
| Market cap | $1.7B | – |
| P/E (trailing) | 25.2 | – |
| Dividend yield | 3.33% | 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 | SFL | SPY |
|---|---|---|
| 2022 | +23.5% | -18.2% |
| 2023 | +34.5% | +26.2% |
| 2024 | -0.8% | +24.9% |
| 2025 | -18.6% | +17.7% |
| 2026 | +64.2% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SFL and SPY good diversifiers for each other?
Reasonably. At 0.28, SFL and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between SFL and SPY?
The SFL/SPY correlation stands at 0.28 on a 3-year window (1 year: 0.08, 5 years: 0.28), computed from weekly returns as of 2026-08-27.
Is SPY a good diversifier for SFL?
Reasonably. At 0.28, SFL and SPY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.28 mean?
On the −1 to +1 scale, 0.28 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: SFL correlations · SPY correlations
