SPY vs VSTM: Correlation
SPDR S&P 500 ETF Trust (SPY) and Verastem, Inc. (VSTM) show a weak relationship: their 3-year correlation of weekly returns is 0.20.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and VSTM?
Across a 3-year window, the weekly returns of SPY and VSTM correlate at 0.20, weak. The relationship has been stable: the 1-year correlation (0.28) sits close to the 3-year figure. Stretching to 5 years gives 0.20, with an annualized covariance of 288.6 %².
Within SPY's tracked universe of 4755 assets, VSTM comes in at #3298 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 41.2 percentage points (+20.6% for SPY against -20.6% for VSTM). Note the risk asymmetry: VSTM runs 7.0 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 VSTM: side by side
| SPY (SPDR S&P 500 ETF Trust) | VSTM (Verastem, Inc.) | |
|---|---|---|
| 1-year return | +20.6% | -20.6% |
| 5-year return | +82.4% | -77.0% |
| Volatility (ann.) | 14.5% | 102.2% |
| Beta vs S&P 500 | 1.00 | 1.38 |
| Max drawdown (3Y) | -18.8% | -84.4% |
| Market cap | – | $0.7B |
| P/E (trailing) | – | – |
| Dividend yield | 1.01% | 0.00% |
| 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 | VSTM |
|---|---|---|
| 2022 | -18.2% | -80.5% |
| 2023 | +26.2% | +69.6% |
| 2024 | +24.9% | -36.5% |
| 2025 | +17.7% | +49.3% |
| 2026 | +13.7% | -4.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and VSTM good diversifiers for each other?
Reasonably. At 0.20, SPY and VSTM keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between SPY and VSTM?
Using weekly returns as of 2026-08-27: 0.20 over 3 years, with 0.28 over the last year and 0.20 over 5 years.
Is VSTM a good diversifier for SPY?
Reasonably. At 0.20, SPY and VSTM keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.20 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-vstm.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/spy-vs-vstm/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SPY correlations · VSTM correlations
