SPY vs VLY: Correlation
Measured on weekly returns over the past three years, SPDR S&P 500 ETF Trust (SPY) and Valley National Bancorp (VLY) carry a correlation of 0.41, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and VLY?
On 3 years of weekly data the SPY/VLY correlation comes out at 0.41, moderate. Recent behaviour matches the longer record: 0.32 over 1 year against 0.41 over 3. The 5-year figure is 0.45, and annualized covariance runs at 194.9 %².
Among the 4755 assets we track against SPY, VLY ranks #1095 by 3-year correlation. The last year tells two different stories: VLY led by 17.3 percentage points, +20.6% for SPY against +37.9% for VLY. One caveat on sizing: VLY is 2.3 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 VLY: side by side
| SPY (SPDR S&P 500 ETF Trust) | VLY (Valley National Bancorp) | |
|---|---|---|
| 1-year return | +20.6% | +37.9% |
| 5-year return | +82.4% | +32.9% |
| Volatility (ann.) | 14.5% | 32.8% |
| Beta vs S&P 500 | 1.00 | 0.93 |
| Max drawdown (3Y) | -18.8% | -39.5% |
| Market cap | – | $7.7B |
| P/E (trailing) | – | 11.9 |
| Dividend yield | 1.01% | 3.12% |
| Expense ratio | 0.09% | – |
| Assets under management | $795.3B | – |
| Sector / category | ETF · US Large Cap | US Listed |
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 | VLY |
|---|---|---|
| 2022 | -18.2% | -14.6% |
| 2023 | +26.2% | +0.7% |
| 2024 | +24.9% | -11.9% |
| 2025 | +17.7% | +34.8% |
| 2026 | +13.7% | +21.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and VLY good diversifiers for each other?
A fair diversifier. At 0.41, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between SPY and VLY?
Using weekly returns as of 2026-08-27: 0.41 over 3 years, with 0.32 over the last year and 0.45 over 5 years.
Is VLY a good diversifier for SPY?
A fair diversifier. At 0.41, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.41 mean?
A reading of 0.41 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-vly.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/spy-vs-vly/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: SPY correlations · VLY correlations
