SPY vs TM: Correlation
How closely do SPDR S&P 500 ETF Trust (SPY) and Toyota Motor Corporation (TM) trade together? Their weekly returns over three years give a correlation of 0.41, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and TM?
Across a 3-year window, the weekly returns of SPY and TM correlate at 0.41, moderate. Recent behaviour matches the longer record: 0.31 over 1 year against 0.41 over 3. Stretching to 5 years gives 0.47, with an annualized covariance of 173.1 %².
By 3-year correlation, TM places #1090 of the 4755 assets tracked against SPY. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 23.0 percentage points (+20.6% for SPY against -2.4% for TM). One caveat on sizing: TM is 2.0 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 TM: side by side
| SPY (SPDR S&P 500 ETF Trust) | TM (Toyota Motor Corporation) | |
|---|---|---|
| 1-year return | +20.6% | -2.4% |
| 5-year return | +82.4% | +24.1% |
| Volatility (ann.) | 14.5% | 28.9% |
| Beta vs S&P 500 | 1.00 | 0.83 |
| Max drawdown (3Y) | -18.8% | -34.9% |
| Market cap | – | $227.4B |
| P/E (trailing) | – | 8.7 |
| Dividend yield | 1.01% | 49.52% |
| 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 | TM |
|---|---|---|
| 2022 | -18.2% | -24.4% |
| 2023 | +26.2% | +38.2% |
| 2024 | +24.9% | +8.9% |
| 2025 | +17.7% | +12.2% |
| 2026 | +13.7% | -10.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and TM good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.41 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between SPY and TM?
As of 2026-08-27, the correlation of weekly returns between SPY and TM is 0.41 over 3 years, 0.31 over 1 year and 0.47 over 5 years.
Is TM a good diversifier for SPY?
Yes, to a useful degree: a correlation of 0.41 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.41 mean?
On the −1 to +1 scale, 0.41 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/spy-vs-tm.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/spy-vs-tm/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SPY correlations · TM correlations
