SPY vs TOWN: Correlation
Measured on weekly returns over the past three years, SPDR S&P 500 ETF Trust (SPY) and Towne Bank (TOWN) carry a correlation of 0.44, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and TOWN?
Over the past 3 years, SPY and TOWN moved with a correlation of 0.44, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.16 versus 0.44 over 3 years. Over 5 years the correlation is 0.43, and the annualized covariance of weekly returns is 160.2 %².
Within SPY's tracked universe of 4755 assets, TOWN comes in at #827 by 3-year correlation. Over the last 12 months SPY came out ahead by 13.9 percentage points (+20.6% against +6.7%). Risk is not evenly split, since TOWN carries 1.7 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 TOWN: side by side
| SPY (SPDR S&P 500 ETF Trust) | TOWN (Towne Bank) | |
|---|---|---|
| 1-year return | +20.6% | +6.7% |
| 5-year return | +82.4% | +47.6% |
| Volatility (ann.) | 14.5% | 25.0% |
| Beta vs S&P 500 | 1.00 | 0.77 |
| Max drawdown (3Y) | -18.8% | -18.4% |
| Market cap | – | $3.5B |
| P/E (trailing) | – | 18.0 |
| Dividend yield | 1.01% | 2.90% |
| 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 | TOWN |
|---|---|---|
| 2022 | -18.2% | +0.7% |
| 2023 | +26.2% | +0.3% |
| 2024 | +24.9% | +18.3% |
| 2025 | +17.7% | +1.0% |
| 2026 | +13.7% | +16.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and TOWN good diversifiers for each other?
Reasonably. At 0.44, SPY and TOWN keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between SPY and TOWN?
The SPY/TOWN correlation stands at 0.44 on a 3-year window (1 year: 0.16, 5 years: 0.43), computed from weekly returns as of 2026-08-27.
Is TOWN a good diversifier for SPY?
Reasonably. At 0.44, SPY and TOWN keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.44 mean?
A reading of 0.44 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 · TOWN correlations
