SM vs SPY: Correlation
SM Energy Company (SM) and SPDR S&P 500 ETF Trust (SPY) show a weak relationship: their 3-year correlation of weekly returns is 0.13.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SM and SPY?
On 3 years of weekly data the SM/SPY correlation comes out at 0.13, weak. Lately the two have drifted apart, with the 1-year correlation at -0.35 versus 0.13 over 3 years. The 5-year figure is 0.28, and annualized covariance runs at 91.2 %².
Out of 21 assets tracked against SM, SPY lands near the bottom at #17. Correlation aside, the last 12 months split them widely, with SM ahead by 15.5 points (+36.1% versus +20.6%). Note the risk asymmetry: SM runs 3.3 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.
SM vs SPY: side by side
| SM (SM Energy Company) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | +36.1% | +20.6% |
| 5-year return | +114.6% | +82.4% |
| Volatility (ann.) | 47.6% | 14.5% |
| Beta vs S&P 500 | 0.44 | 1.00 |
| Max drawdown (3Y) | -64.9% | -18.8% |
| Market cap | $8.8B | – |
| P/E (trailing) | 6.3 | – |
| Dividend yield | 2.32% | 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 | SM | SPY |
|---|---|---|
| 2022 | +18.6% | -18.2% |
| 2023 | +13.1% | +26.2% |
| 2024 | +1.8% | +24.9% |
| 2025 | -49.7% | +17.7% |
| 2026 | +99.9% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SM and SPY good diversifiers for each other?
Yes: at 0.13, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between SM and SPY?
Using weekly returns as of 2026-08-27: 0.13 over 3 years, with -0.35 over the last year and 0.28 over 5 years.
Is SPY a good diversifier for SM?
Yes: at 0.13, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of 0.13 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: SM correlations · SPY correlations
