SPY vs T: Correlation
Measured on weekly returns over the past three years, SPDR S&P 500 ETF Trust (SPY) and AT&T (T) carry a correlation of 0.03, a near-zero link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and T?
On 3 years of weekly data the SPY/T correlation comes out at 0.03, near zero, meaning they move largely independently. Lately the two have drifted apart, with the 1-year correlation at -0.20 versus 0.03 over 3 years. The 5-year figure is 0.18, and annualized covariance runs at 10.0 %².
By 3-year correlation, T places #4503 of the 4755 assets tracked against SPY. Correlation aside, the last 12 months split them widely, with SPY ahead by 29.0 points (+20.6% versus -8.4%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.24 to 0.51. Risk is not evenly split, since T carries 1.5 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.
SPY vs T: side by side
| SPY (SPDR S&P 500 ETF Trust) | T (AT&T) | |
|---|---|---|
| 1-year return | +20.6% | -8.4% |
| 5-year return | +82.4% | +67.2% |
| Volatility (ann.) | 14.5% | 22.4% |
| Beta vs S&P 500 | 1.00 | 0.05 |
| Max drawdown (3Y) | -18.8% | -28.9% |
| Market cap | – | $174.3B |
| P/E (trailing) | – | 8.4 |
| Dividend yield | 1.01% | 4.29% |
| Expense ratio | 0.09% | – |
| Assets under management | $795.3B | – |
| Sector / category | ETF · US Large Cap | Communication Services |
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 | T |
|---|---|---|
| 2022 | -18.2% | +6.5% |
| 2023 | +26.2% | -2.7% |
| 2024 | +24.9% | +44.1% |
| 2025 | +17.7% | +14.0% |
| 2026 | +13.7% | +6.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.27% of SPY is T itself, so the fund partly moves with the stock by construction.
Are SPY and T good diversifiers for each other?
Yes. With a correlation of 0.03, SPY and T have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between SPY and T?
The SPY/T correlation stands at 0.03 on a 3-year window (1 year: -0.20, 5 years: 0.18), computed from weekly returns as of 2026-08-27.
Is T a good diversifier for SPY?
Yes. With a correlation of 0.03, SPY and T have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of 0.03 mean?
On the −1 to +1 scale, 0.03 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.
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Related comparisons
Hubs: SPY correlations · T correlations
