SPY vs TXT: Correlation
How closely do SPDR S&P 500 ETF Trust (SPY) and Textron (TXT) trade together? Their weekly returns over three years give a correlation of 0.51, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and TXT?
Across a 3-year window, the weekly returns of SPY and TXT correlate at 0.51, moderate. The past 12 months show a weaker link (0.24) than the 3-year average (0.51). Stretching to 5 years gives 0.58, with an annualized covariance of 185.9 %².
Within SPY's tracked universe of 4755 assets, TXT comes in at #440 by 3-year correlation. The last year tells two different stories: SPY led by 19.9 percentage points, +20.6% for SPY against +0.7% for TXT. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.21 to 0.78. One caveat on sizing: TXT is 1.8 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 TXT: side by side
| SPY (SPDR S&P 500 ETF Trust) | TXT (Textron) | |
|---|---|---|
| 1-year return | +20.6% | +0.7% |
| 5-year return | +82.4% | +15.1% |
| Volatility (ann.) | 14.5% | 25.4% |
| Beta vs S&P 500 | 1.00 | 0.89 |
| Max drawdown (3Y) | -18.8% | -37.3% |
| Market cap | – | $14.2B |
| P/E (trailing) | – | 15.7 |
| Dividend yield | 1.01% | 0.10% |
| Expense ratio | 0.09% | – |
| Assets under management | $795.3B | – |
| Sector / category | ETF · US Large Cap | Industrials |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | SPY | TXT |
|---|---|---|
| 2022 | -18.2% | -8.2% |
| 2023 | +26.2% | +13.7% |
| 2024 | +24.9% | -4.8% |
| 2025 | +17.7% | +14.1% |
| 2026 | +13.7% | -5.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and TXT good diversifiers for each other?
To a limited degree. At 0.51 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 TXT?
Using weekly returns as of 2026-08-27: 0.51 over 3 years, with 0.24 over the last year and 0.58 over 5 years.
Is TXT a good diversifier for SPY?
To a limited degree. At 0.51 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 0.51 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-txt.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/spy-vs-txt/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SPY correlations · TXT correlations
