SPY vs STWD: Correlation
How closely do SPDR S&P 500 ETF Trust (SPY) and STARWOOD PROPERTY TRUST, INC. Starwood Property Trust Inc. (STWD) trade together? Their weekly returns over three years give a correlation of 0.48, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and STWD?
Across a 3-year window, the weekly returns of SPY and STWD correlate at 0.48, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.33 versus 0.48 over 3 years. Stretching to 5 years gives 0.62, with an annualized covariance of 134.8 %².
By 3-year correlation, STWD places #554 of the 4755 assets tracked against SPY. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 32.4 percentage points (+20.6% for SPY against -11.8% for STWD).
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 STWD: side by side
| SPY (SPDR S&P 500 ETF Trust) | STWD (STARWOOD PROPERTY TRUST, INC. Starwood Property Trust Inc.) | |
|---|---|---|
| 1-year return | +20.6% | -11.8% |
| 5-year return | +82.4% | +0.5% |
| Volatility (ann.) | 14.5% | 19.3% |
| Beta vs S&P 500 | 1.00 | 0.65 |
| Max drawdown (3Y) | -18.8% | -15.8% |
| Market cap | – | $6.1B |
| P/E (trailing) | – | 27.0 |
| Dividend yield | 1.01% | 12.07% |
| 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 | STWD |
|---|---|---|
| 2022 | -18.2% | -17.3% |
| 2023 | +26.2% | +26.7% |
| 2024 | +24.9% | -0.6% |
| 2025 | +17.7% | +4.9% |
| 2026 | +13.7% | -6.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and STWD good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.48 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between SPY and STWD?
Using weekly returns as of 2026-08-27: 0.48 over 3 years, with 0.33 over the last year and 0.62 over 5 years.
Is STWD a good diversifier for SPY?
Yes, to a useful degree: a correlation of 0.48 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.48 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/spy-vs-stwd.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/spy-vs-stwd/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SPY correlations · STWD correlations
