SPY vs TGT: Correlation
Measured on weekly returns over the past three years, SPDR S&P 500 ETF Trust (SPY) and Target Corporation (TGT) carry a correlation of 0.28, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and TGT?
Over the past 3 years, SPY and TGT moved with a correlation of 0.28, which is weak. Lately the two have drifted apart, with the 1-year correlation at 0.06 versus 0.28 over 3 years. Over 5 years the correlation is 0.43, and the annualized covariance of weekly returns is 130.3 %².
By 3-year correlation, TGT places #2484 of the 4755 assets tracked against SPY. Correlation aside, the last 12 months split them widely, with TGT ahead by 55.6 points (+20.6% versus +76.2%). This link changes with the market regime, having swung between 0.08 and 0.70 on a rolling one-year basis. Risk is not evenly split, since TGT carries 2.2 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 TGT: side by side
| SPY (SPDR S&P 500 ETF Trust) | TGT (Target Corporation) | |
|---|---|---|
| 1-year return | +20.6% | +76.2% |
| 5-year return | +82.4% | -22.2% |
| Volatility (ann.) | 14.5% | 32.0% |
| Beta vs S&P 500 | 1.00 | 0.62 |
| Max drawdown (3Y) | -18.8% | -49.8% |
| Market cap | – | $75.4B |
| P/E (trailing) | – | 17.2 |
| Dividend yield | 1.01% | 2.78% |
| Expense ratio | 0.09% | – |
| Assets under management | $795.3B | – |
| Sector / category | ETF · US Large Cap | Consumer Staples |
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 | TGT |
|---|---|---|
| 2022 | -18.2% | -34.2% |
| 2023 | +26.2% | -1.4% |
| 2024 | +24.9% | -2.3% |
| 2025 | +17.7% | -24.5% |
| 2026 | +13.7% | +74.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.11% of SPY is TGT itself, so the fund partly moves with the stock by construction.
Are SPY and TGT good diversifiers for each other?
Reasonably. At 0.28, SPY and TGT keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between SPY and TGT?
As of 2026-08-27, the correlation of weekly returns between SPY and TGT is 0.28 over 3 years, 0.06 over 1 year and 0.43 over 5 years.
Is TGT a good diversifier for SPY?
Reasonably. At 0.28, SPY and TGT keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.28 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.
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Related comparisons
Hubs: SPY correlations · TGT correlations
