SPY vs W: Correlation
How closely do SPDR S&P 500 ETF Trust (SPY) and Wayfair Inc. (W) trade together? Their weekly returns over three years give a correlation of 0.54, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and W?
Over the past 3 years, SPY and W moved with a correlation of 0.54, which is moderate. The link has loosened recently: the 1-year correlation (0.36) runs below the 3-year figure (0.54). Over 5 years the correlation is 0.59, and the annualized covariance of weekly returns is 521.8 %².
Among the 4755 assets we track against SPY, W ranks #325 by 3-year correlation. Correlation aside, the last 12 months split them widely, with W ahead by 20.4 points (+20.6% versus +41.0%). Note the risk asymmetry: W runs 4.6 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 W: side by side
| SPY (SPDR S&P 500 ETF Trust) | W (Wayfair Inc.) | |
|---|---|---|
| 1-year return | +20.6% | +41.0% |
| 5-year return | +82.4% | -64.0% |
| Volatility (ann.) | 14.5% | 67.1% |
| Beta vs S&P 500 | 1.00 | 2.50 |
| Max drawdown (3Y) | -18.8% | -67.7% |
| Market cap | – | $14.4B |
| 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 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 | W |
|---|---|---|
| 2022 | -18.2% | -82.7% |
| 2023 | +26.2% | +87.6% |
| 2024 | +24.9% | -28.2% |
| 2025 | +17.7% | +126.6% |
| 2026 | +13.7% | +4.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and W good diversifiers for each other?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SPY and W?
The SPY/W correlation stands at 0.54 on a 3-year window (1 year: 0.36, 5 years: 0.59), computed from weekly returns as of 2026-08-27.
Is W a good diversifier for SPY?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.54 mean?
A reading of 0.54 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: SPY correlations · W correlations
