SPY vs STT: Correlation
How closely do SPDR S&P 500 ETF Trust (SPY) and State Street Corporation (STT) trade together? Their weekly returns over three years give a correlation of 0.61, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and STT?
Across a 3-year window, the weekly returns of SPY and STT correlate at 0.61, strong. The relationship has been stable: the 1-year correlation (0.51) sits close to the 3-year figure. Stretching to 5 years gives 0.64, with an annualized covariance of 202.9 %².
By 3-year correlation, STT places #170 of the 4755 assets tracked against SPY. The last year tells two different stories: STT led by 52.1 percentage points, +20.6% for SPY against +72.7% for STT. The relationship is regime-dependent: the rolling one-year correlation swung between 0.29 and 0.80 over the past three years, so this pair behaves very differently depending on the market environment. One caveat on sizing: STT is 1.6 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 STT: side by side
| SPY (SPDR S&P 500 ETF Trust) | STT (State Street Corporation) | |
|---|---|---|
| 1-year return | +20.6% | +72.7% |
| 5-year return | +82.4% | +144.9% |
| Volatility (ann.) | 14.5% | 22.9% |
| Beta vs S&P 500 | 1.00 | 0.97 |
| Max drawdown (3Y) | -18.8% | -25.7% |
| Market cap | – | $53.1B |
| P/E (trailing) | – | 17.1 |
| Dividend yield | 1.01% | 1.74% |
| Expense ratio | 0.09% | – |
| Assets under management | $795.3B | – |
| Sector / category | ETF · US Large Cap | Financials |
On the fund side, SPY sits in the Large Blend category at State Street Investment Management, with $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | SPY | STT |
|---|---|---|
| 2022 | -18.2% | -13.8% |
| 2023 | +26.2% | +3.5% |
| 2024 | +24.9% | +30.2% |
| 2025 | +17.7% | +35.5% |
| 2026 | +13.7% | +52.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.08% of SPY is STT itself, so the fund partly moves with the stock by construction.
Are SPY and STT good diversifiers for each other?
To a limited degree. At 0.61 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between SPY and STT?
The SPY/STT correlation stands at 0.61 on a 3-year window (1 year: 0.51, 5 years: 0.64), computed from weekly returns as of 2026-08-27.
Is STT a good diversifier for SPY?
To a limited degree. At 0.61 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.61 mean?
A reading of 0.61 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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Related comparisons
Hubs: SPY correlations · STT correlations
