SPOT vs SPY: Correlation
How closely do Spotify Technology S.A. (SPOT) and SPDR S&P 500 ETF Trust (SPY) trade together? Their weekly returns over three years give a correlation of 0.31, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPOT and SPY?
On 3 years of weekly data the SPOT/SPY correlation comes out at 0.31, moderate. The past 12 months show a weaker link (0.13) than the 3-year average (0.31). The 5-year figure is 0.49, and annualized covariance runs at 176.6 %².
By 3-year correlation, SPY places #6 of the 11 assets tracked against SPOT. The last year tells two different stories: SPY led by 44.5 percentage points, -23.9% for SPOT against +20.6% for SPY. Risk is not evenly split, since SPOT carries 2.7 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.
SPOT vs SPY: side by side
| SPOT (Spotify Technology S.A.) | SPY (SPDR S&P 500 ETF Trust) | |
|---|---|---|
| 1-year return | -23.9% | +20.6% |
| 5-year return | +126.2% | +82.4% |
| Volatility (ann.) | 39.5% | 14.5% |
| Beta vs S&P 500 | 0.85 | 1.00 |
| Max drawdown (3Y) | -46.8% | -18.8% |
| Market cap | $108.4B | – |
| P/E (trailing) | 29.6 | – |
| 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 | SPOT | SPY |
|---|---|---|
| 2022 | -66.3% | -18.2% |
| 2023 | +138.0% | +26.2% |
| 2024 | +138.1% | +24.9% |
| 2025 | +29.8% | +17.7% |
| 2026 | -9.2% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPOT and SPY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.31 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between SPOT and SPY?
Using weekly returns as of 2026-08-27: 0.31 over 3 years, with 0.13 over the last year and 0.49 over 5 years.
Is SPY a good diversifier for SPOT?
Yes, to a useful degree: a correlation of 0.31 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.31 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: SPOT correlations · SPY correlations
