SPY vs TCBI: Correlation
Measured on weekly returns over the past three years, SPDR S&P 500 ETF Trust (SPY) and Texas Capital Bancshares, Inc. (TCBI) carry a correlation of 0.42, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and TCBI?
On 3 years of weekly data the SPY/TCBI correlation comes out at 0.42, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.27 versus 0.42 over 3 years. The 5-year figure is 0.42, and annualized covariance runs at 169.2 %².
Within SPY's tracked universe of 4755 assets, TCBI comes in at #990 by 3-year correlation. On 12-month performance SPY holds a 7.8-point edge, +20.6% against +12.8%. One caveat on sizing: TCBI is 1.9 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 TCBI: side by side
| SPY (SPDR S&P 500 ETF Trust) | TCBI (Texas Capital Bancshares, Inc.) | |
|---|---|---|
| 1-year return | +20.6% | +12.8% |
| 5-year return | +82.4% | +47.7% |
| Volatility (ann.) | 14.5% | 28.1% |
| Beta vs S&P 500 | 1.00 | 0.81 |
| Max drawdown (3Y) | -18.8% | -31.7% |
| Market cap | – | $4.3B |
| P/E (trailing) | – | 12.8 |
| Dividend yield | 1.01% | 0.20% |
| Expense ratio | 0.09% | – |
| Assets under management | $795.3B | – |
| Sector / category | ETF · US Large Cap | US Listed |
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 | TCBI |
|---|---|---|
| 2022 | -18.2% | +0.1% |
| 2023 | +26.2% | +7.2% |
| 2024 | +24.9% | +21.0% |
| 2025 | +17.7% | +15.8% |
| 2026 | +13.7% | +8.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and TCBI good diversifiers for each other?
Reasonably. At 0.42, SPY and TCBI keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between SPY and TCBI?
Using weekly returns as of 2026-08-27: 0.42 over 3 years, with 0.27 over the last year and 0.42 over 5 years.
Is TCBI a good diversifier for SPY?
Reasonably. At 0.42, SPY and TCBI keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.42 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-tcbi.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/spy-vs-tcbi/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SPY correlations · TCBI correlations
