SPY vs WAT: Correlation
How closely do SPDR S&P 500 ETF Trust (SPY) and Waters Corporation (WAT) trade together? Their weekly returns over three years give a correlation of 0.36, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and WAT?
On 3 years of weekly data the SPY/WAT correlation comes out at 0.36, moderate. The relationship has been stable: the 1-year correlation (0.41) sits close to the 3-year figure. The 5-year figure is 0.46, and annualized covariance runs at 185.8 %².
By 3-year correlation, WAT places #1601 of the 4755 assets tracked against SPY. The last year tells two different stories: WAT led by 22.4 percentage points, +20.6% for SPY against +43.0% for WAT. The relationship is regime-dependent: the rolling one-year correlation swung between 0.17 and 0.68 over the past three years, so this pair behaves very differently depending on the market environment. One caveat on sizing: WAT is 2.4 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 WAT: side by side
| SPY (SPDR S&P 500 ETF Trust) | WAT (Waters Corporation) | |
|---|---|---|
| 1-year return | +20.6% | +43.0% |
| 5-year return | +82.4% | +2.0% |
| Volatility (ann.) | 14.5% | 35.3% |
| Beta vs S&P 500 | 1.00 | 0.89 |
| Max drawdown (3Y) | -18.8% | -33.4% |
| Market cap | – | $41.4B |
| P/E (trailing) | – | 105.3 |
| Dividend yield | 1.01% | 0.00% |
| Expense ratio | 0.09% | – |
| Assets under management | $795.3B | – |
| Sector / category | ETF · US Large Cap | Health Care |
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 | WAT |
|---|---|---|
| 2022 | -18.2% | -8.1% |
| 2023 | +26.2% | -3.9% |
| 2024 | +24.9% | +12.7% |
| 2025 | +17.7% | +2.4% |
| 2026 | +13.7% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
WAT represents 0.06% of SPY's portfolio, so part of any move in SPY is WAT itself, and the correlation between them is partly mechanical.
Are SPY and WAT good diversifiers for each other?
Reasonably. At 0.36, SPY and WAT keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between SPY and WAT?
The SPY/WAT correlation stands at 0.36 on a 3-year window (1 year: 0.41, 5 years: 0.46), computed from weekly returns as of 2026-08-27.
Is WAT a good diversifier for SPY?
Reasonably. At 0.36, SPY and WAT keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.36 mean?
A reading of 0.36 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
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Related comparisons
Hubs: SPY correlations · WAT correlations
