SPY vs STEP: Correlation
How closely do SPDR S&P 500 ETF Trust (SPY) and StepStone Group Inc. (STEP) trade together? Their weekly returns over three years give a correlation of 0.55, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and STEP?
Across a 3-year window, the weekly returns of SPY and STEP correlate at 0.55, moderate. The relationship has been stable: the 1-year correlation (0.48) sits close to the 3-year figure. Stretching to 5 years gives 0.62, with an annualized covariance of 298.5 %².
Within SPY's tracked universe of 4755 assets, STEP comes in at #286 by 3-year correlation. Correlation aside, the last 12 months split them widely, with SPY ahead by 37.7 points (+20.6% versus -17.1%). One caveat on sizing: STEP is 2.6 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
SPY vs STEP: side by side
| SPY (SPDR S&P 500 ETF Trust) | STEP (StepStone Group Inc.) | |
|---|---|---|
| 1-year return | +20.6% | -17.1% |
| 5-year return | +82.4% | +20.7% |
| Volatility (ann.) | 14.5% | 37.9% |
| Beta vs S&P 500 | 1.00 | 1.43 |
| Max drawdown (3Y) | -18.8% | -46.9% |
| Market cap | – | $6.5B |
| P/E (trailing) | – | – |
| Dividend yield | 1.01% | 2.25% |
| Expense ratio | 0.09% | – |
| Assets under management | $795.3B | – |
| Sector / category | ETF · US Large Cap | US Listed |
SPY, State Street Investment Management's Large Blend fund, carries $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | SPY | STEP |
|---|---|---|
| 2022 | -18.2% | -37.8% |
| 2023 | +26.2% | +31.7% |
| 2024 | +24.9% | +85.9% |
| 2025 | +17.7% | +13.6% |
| 2026 | +13.7% | -19.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and STEP good diversifiers for each other?
Only partially. A correlation of 0.55 means SPY and STEP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between SPY and STEP?
Using weekly returns as of 2026-08-27: 0.55 over 3 years, with 0.48 over the last year and 0.62 over 5 years.
Is STEP a good diversifier for SPY?
Only partially. A correlation of 0.55 means SPY and STEP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.55 mean?
On the −1 to +1 scale, 0.55 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/spy-vs-step.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/spy-vs-step/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SPY correlations · STEP correlations
