SPY vs WSO: Correlation
How closely do SPDR S&P 500 ETF Trust (SPY) and Watsco, Inc. (WSO) trade together? Their weekly returns over three years give a correlation of 0.48, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and WSO?
Across a 3-year window, the weekly returns of SPY and WSO correlate at 0.48, moderate. The relationship has been stable: the 1-year correlation (0.39) sits close to the 3-year figure. Stretching to 5 years gives 0.56, with an annualized covariance of 218.9 %².
By 3-year correlation, WSO places #558 of the 4755 assets tracked against SPY. Correlation aside, the last 12 months split them widely, with SPY ahead by 41.4 points (+20.6% versus -20.8%). One caveat on sizing: WSO is 2.2 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 WSO: side by side
| SPY (SPDR S&P 500 ETF Trust) | WSO (Watsco, Inc.) | |
|---|---|---|
| 1-year return | +20.6% | -20.8% |
| 5-year return | +82.4% | +28.2% |
| Volatility (ann.) | 14.5% | 31.9% |
| Beta vs S&P 500 | 1.00 | 1.05 |
| Max drawdown (3Y) | -18.8% | -44.1% |
| Market cap | – | $12.9B |
| P/E (trailing) | – | 27.0 |
| Dividend yield | 1.01% | 3.91% |
| 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 | WSO |
|---|---|---|
| 2022 | -18.2% | -17.7% |
| 2023 | +26.2% | +77.0% |
| 2024 | +24.9% | +13.2% |
| 2025 | +17.7% | -27.0% |
| 2026 | +13.7% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and WSO good diversifiers for each other?
A fair diversifier. At 0.48, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between SPY and WSO?
The SPY/WSO correlation stands at 0.48 on a 3-year window (1 year: 0.39, 5 years: 0.56), computed from weekly returns as of 2026-08-27.
Is WSO a good diversifier for SPY?
A fair diversifier. At 0.48, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.48 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-wso.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/spy-vs-wso/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SPY correlations · WSO correlations
