SPY vs TSLA: Correlation
Measured on weekly returns over the past three years, SPDR S&P 500 ETF Trust (SPY) and Tesla, Inc. (TSLA) carry a correlation of 0.50, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and TSLA?
Over the past 3 years, SPY and TSLA moved with a correlation of 0.50, which is moderate. Recent behaviour matches the longer record: 0.56 over 1 year against 0.50 over 3. Over 5 years the correlation is 0.54, and the annualized covariance of weekly returns is 390.2 %².
Within SPY's tracked universe of 4755 assets, TSLA comes in at #470 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 19.1 percentage points (+20.6% for SPY against +1.5% for TSLA). The rolling one-year correlation moved between 0.36 and 0.61 over the past three years, a moderate range. One caveat on sizing: TSLA is 3.7 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 TSLA: side by side
| SPY (SPDR S&P 500 ETF Trust) | TSLA (Tesla, Inc.) | |
|---|---|---|
| 1-year return | +20.6% | +1.5% |
| 5-year return | +82.4% | +45.6% |
| Volatility (ann.) | 14.5% | 53.9% |
| Beta vs S&P 500 | 1.00 | 1.87 |
| Max drawdown (3Y) | -18.8% | -53.8% |
| Market cap | – | $1,401.3B |
| P/E (trailing) | – | 322.6 |
| Dividend yield | 1.01% | 0.00% |
| Expense ratio | 0.09% | – |
| Assets under management | $795.3B | – |
| Sector / category | ETF · US Large Cap | Consumer Discretionary |
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 | TSLA |
|---|---|---|
| 2022 | -18.2% | -65.0% |
| 2023 | +26.2% | +101.7% |
| 2024 | +24.9% | +62.5% |
| 2025 | +17.7% | +11.4% |
| 2026 | +13.7% | -21.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that SPY holds TSLA at a 1.47% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are SPY and TSLA good diversifiers for each other?
Somewhat, no more. With 0.50 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SPY and TSLA?
The SPY/TSLA correlation stands at 0.50 on a 3-year window (1 year: 0.56, 5 years: 0.54), computed from weekly returns as of 2026-08-27.
Is TSLA a good diversifier for SPY?
Somewhat, no more. With 0.50 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.50 mean?
On the −1 to +1 scale, 0.50 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
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Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/spy-vs-tsla/)
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Related comparisons
Hubs: SPY correlations · TSLA correlations
