SPY vs TSI: Correlation
How closely do SPDR S&P 500 ETF Trust (SPY) and TCW Strategic Income Fund, Inc. (TSI) trade together? Their weekly returns over three years give a correlation of 0.44, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and TSI?
Over the past 3 years, SPY and TSI moved with a correlation of 0.44, which is moderate. The link has loosened recently: the 1-year correlation (0.29) runs below the 3-year figure (0.44). Over 5 years the correlation is 0.44, and the annualized covariance of weekly returns is 44.3 %².
Among the 4755 assets we track against SPY, TSI ranks #829 by 3-year correlation. The last year tells two different stories: SPY led by 23.5 percentage points, +20.6% for SPY against -2.9% for TSI. Risk is not evenly split, since SPY carries 2.1 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 TSI: side by side
| SPY (SPDR S&P 500 ETF Trust) | TSI (TCW Strategic Income Fund, Inc.) | |
|---|---|---|
| 1-year return | +20.6% | -2.9% |
| 5-year return | +82.4% | +12.9% |
| Volatility (ann.) | 14.5% | 6.9% |
| Beta vs S&P 500 | 1.00 | 0.21 |
| Max drawdown (3Y) | -18.8% | -8.3% |
| Market cap | – | $0.3B |
| P/E (trailing) | – | 10.7 |
| Dividend yield | 1.01% | 5.91% |
| Expense ratio | 0.09% | – |
| Assets under management | $795.3B | – |
| Sector / category | ETF · US Large Cap | US Listed |
SPY, State Street Investment Management's Large Blend fund, carries $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | SPY | TSI |
|---|---|---|
| 2022 | -18.2% | -12.8% |
| 2023 | +26.2% | +7.1% |
| 2024 | +24.9% | +13.5% |
| 2025 | +17.7% | +9.7% |
| 2026 | +13.7% | -6.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and TSI good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.44 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between SPY and TSI?
The SPY/TSI correlation stands at 0.44 on a 3-year window (1 year: 0.29, 5 years: 0.44), computed from weekly returns as of 2026-08-27.
Is TSI a good diversifier for SPY?
Yes, to a useful degree: a correlation of 0.44 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.44 mean?
On the −1 to +1 scale, 0.44 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.
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Related comparisons
Hubs: SPY correlations · TSI correlations
