SPY vs TT: Correlation
Measured on weekly returns over the past three years, SPDR S&P 500 ETF Trust (SPY) and Trane Technologies (TT) carry a correlation of 0.62, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and TT?
Across a 3-year window, the weekly returns of SPY and TT correlate at 0.62, strong. The past 12 months show a weaker link (0.37) than the 3-year average (0.62). Stretching to 5 years gives 0.65, with an annualized covariance of 249.3 %².
Within SPY's tracked universe of 4755 assets, TT comes in at #157 by 3-year correlation. The trailing year gives SPY the advantage: +20.6% versus +7.8%, a 12.8-point spread. The rolling one-year correlation moved between 0.35 and 0.76 over the past three years, a moderate range. Note the risk asymmetry: TT runs 1.9 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 TT: side by side
| SPY (SPDR S&P 500 ETF Trust) | TT (Trane Technologies) | |
|---|---|---|
| 1-year return | +20.6% | +7.8% |
| 5-year return | +82.4% | +141.4% |
| Volatility (ann.) | 14.5% | 27.8% |
| Beta vs S&P 500 | 1.00 | 1.19 |
| Max drawdown (3Y) | -18.8% | -24.4% |
| Market cap | – | $100.0B |
| P/E (trailing) | – | 33.8 |
| Dividend yield | 1.01% | 0.86% |
| Expense ratio | 0.09% | – |
| Assets under management | $795.3B | – |
| Sector / category | ETF · US Large Cap | Industrials |
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 | TT |
|---|---|---|
| 2022 | -18.2% | -15.3% |
| 2023 | +26.2% | +47.4% |
| 2024 | +24.9% | +53.0% |
| 2025 | +17.7% | +6.1% |
| 2026 | +13.7% | +17.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.15% of SPY is TT itself, so the fund partly moves with the stock by construction.
Are SPY and TT good diversifiers for each other?
To a limited degree. At 0.62 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between SPY and TT?
The SPY/TT correlation stands at 0.62 on a 3-year window (1 year: 0.37, 5 years: 0.65), computed from weekly returns as of 2026-08-27.
Is TT a good diversifier for SPY?
To a limited degree. At 0.62 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.62 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/spy-vs-tt.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/spy-vs-tt/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: SPY correlations · TT correlations
