SPY vs TLF: Correlation
Measured on weekly returns over the past three years, SPDR S&P 500 ETF Trust (SPY) and Tandy Leather Factory, Inc. (TLF) carry a correlation of 0.12, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and TLF?
Over the past 3 years, SPY and TLF moved with a correlation of 0.12, which is weak. The link has tightened recently: the 1-year correlation (0.33) runs above the 3-year figure (0.12). Over 5 years the correlation is 0.15, and the annualized covariance of weekly returns is 47.2 %².
Within SPY's tracked universe of 4755 assets, TLF comes in at #3966 by 3-year correlation. On 12-month performance SPY holds a 8.6-point edge, +20.6% against +12.0%. One caveat on sizing: TLF is 1.8 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 TLF: side by side
| SPY (SPDR S&P 500 ETF Trust) | TLF (Tandy Leather Factory, Inc.) | |
|---|---|---|
| 1-year return | +20.6% | +12.0% |
| 5-year return | +82.4% | +11.5% |
| Volatility (ann.) | 14.5% | 26.5% |
| Beta vs S&P 500 | 1.00 | 0.23 |
| Max drawdown (3Y) | -18.8% | -34.9% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| Dividend yield | 1.01% | 0.00% |
| Expense ratio | 0.09% | – |
| Assets under management | $795.3B | – |
| Sector / category | ETF · US Large Cap | US Listed |
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 | TLF |
|---|---|---|
| 2022 | -18.2% | -17.5% |
| 2023 | +26.2% | +0.2% |
| 2024 | +24.9% | +12.4% |
| 2025 | +17.7% | -20.9% |
| 2026 | +13.7% | +28.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and TLF good diversifiers for each other?
Yes: at 0.12, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between SPY and TLF?
The SPY/TLF correlation stands at 0.12 on a 3-year window (1 year: 0.33, 5 years: 0.15), computed from weekly returns as of 2026-08-27.
Is TLF a good diversifier for SPY?
Yes: at 0.12, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of 0.12 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-tlf.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/spy-vs-tlf/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SPY correlations · TLF correlations
