SPY vs TER: Correlation
How closely do SPDR S&P 500 ETF Trust (SPY) and Teradyne (TER) trade together? Their weekly returns over three years give a correlation of 0.47, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and TER?
On 3 years of weekly data the SPY/TER correlation comes out at 0.47, moderate. The past 12 months show a weaker link (0.31) than the 3-year average (0.47). The 5-year figure is 0.55, and annualized covariance runs at 354.5 %².
Among the 4755 assets we track against SPY, TER ranks #604 by 3-year correlation. The last year tells two different stories: TER led by 198.2 percentage points, +20.6% for SPY against +218.8% for TER. This link changes with the market regime, having swung between 0.20 and 0.73 on a rolling one-year basis. Note the risk asymmetry: TER runs 3.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 TER: side by side
| SPY (SPDR S&P 500 ETF Trust) | TER (Teradyne) | |
|---|---|---|
| 1-year return | +20.6% | +218.8% |
| 5-year return | +82.4% | +207.9% |
| Volatility (ann.) | 14.5% | 52.5% |
| Beta vs S&P 500 | 1.00 | 1.70 |
| Max drawdown (3Y) | -18.8% | -58.2% |
| Market cap | – | $58.2B |
| P/E (trailing) | – | 50.0 |
| Dividend yield | 1.01% | 0.14% |
| Expense ratio | 0.09% | – |
| Assets under management | $795.3B | – |
| Sector / category | ETF · US Large Cap | Information Technology |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | SPY | TER |
|---|---|---|
| 2022 | -18.2% | -46.3% |
| 2023 | +26.2% | +24.8% |
| 2024 | +24.9% | +16.5% |
| 2025 | +17.7% | +54.4% |
| 2026 | +13.7% | +92.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that SPY holds TER at a 0.09% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are SPY and TER good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.47 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between SPY and TER?
The SPY/TER correlation stands at 0.47 on a 3-year window (1 year: 0.31, 5 years: 0.55), computed from weekly returns as of 2026-08-27.
Is TER a good diversifier for SPY?
Yes, to a useful degree: a correlation of 0.47 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.47 mean?
A reading of 0.47 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 · TER correlations
