SPY vs TSEM: Correlation
How closely do SPDR S&P 500 ETF Trust (SPY) and Tower Semiconductor Ltd. (TSEM) trade together? Their weekly returns over three years give a correlation of 0.43, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and TSEM?
Across a 3-year window, the weekly returns of SPY and TSEM correlate at 0.43, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.25 versus 0.43 over 3 years. Stretching to 5 years gives 0.35, with an annualized covariance of 324.2 %².
Within SPY's tracked universe of 4755 assets, TSEM comes in at #915 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months TSEM outperformed by 252.0 percentage points (+20.6% for SPY against +272.6% for TSEM). Risk is not evenly split, since TSEM carries 3.6 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 TSEM: side by side
| SPY (SPDR S&P 500 ETF Trust) | TSEM (Tower Semiconductor Ltd.) | |
|---|---|---|
| 1-year return | +20.6% | +272.6% |
| 5-year return | +82.4% | +648.0% |
| Volatility (ann.) | 14.5% | 52.1% |
| Beta vs S&P 500 | 1.00 | 1.55 |
| Max drawdown (3Y) | -18.8% | -45.8% |
| Market cap | – | $24.8B |
| P/E (trailing) | – | 87.6 |
| Dividend yield | 1.01% | 0.00% |
| 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 | TSEM |
|---|---|---|
| 2022 | -18.2% | +8.9% |
| 2023 | +26.2% | -29.4% |
| 2024 | +24.9% | +68.8% |
| 2025 | +17.7% | +128.0% |
| 2026 | +13.7% | +87.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and TSEM good diversifiers for each other?
A fair diversifier. At 0.43, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between SPY and TSEM?
Using weekly returns as of 2026-08-27: 0.43 over 3 years, with 0.25 over the last year and 0.35 over 5 years.
Is TSEM a good diversifier for SPY?
A fair diversifier. At 0.43, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.43 mean?
A reading of 0.43 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/spy-vs-tsem.json
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[](https://www.pairbook.io/pair/spy-vs-tsem/)
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Related comparisons
Hubs: SPY correlations · TSEM correlations
