SPY vs ZSQR: Correlation
Measured on weekly returns over the past three years, SPDR S&P 500 ETF Trust (SPY) and Z Squared Inc. (ZSQR) carry a correlation of 0.04, a near-zero link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and ZSQR?
Over the past 3 years, SPY and ZSQR moved with a correlation of 0.04, which is near zero, meaning they move largely independently. The link has tightened recently: the 1-year correlation (0.17) runs above the 3-year figure (0.04). Over 5 years the correlation is 0.08, and the annualized covariance of weekly returns is 57.9 %².
By 3-year correlation, ZSQR places #4462 of the 4755 assets tracked against SPY. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 88.8 percentage points (+20.6% for SPY against -68.2% for ZSQR). Note the risk asymmetry: ZSQR runs 6.8 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 ZSQR: side by side
| SPY (SPDR S&P 500 ETF Trust) | ZSQR (Z Squared Inc.) | |
|---|---|---|
| 1-year return | +20.6% | -68.2% |
| 5-year return | +82.4% | -97.9% |
| Volatility (ann.) | 14.5% | 98.5% |
| Beta vs S&P 500 | 1.00 | 0.28 |
| Max drawdown (3Y) | -18.8% | -89.7% |
| Market cap | – | $0.2B |
| 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 | ZSQR |
|---|---|---|
| 2022 | -18.2% | -84.7% |
| 2023 | +26.2% | -48.8% |
| 2024 | +24.9% | -64.9% |
| 2025 | +17.7% | +159.1% |
| 2026 | +13.7% | -70.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and ZSQR good diversifiers for each other?
Yes: at 0.04, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between SPY and ZSQR?
As of 2026-08-27, the correlation of weekly returns between SPY and ZSQR is 0.04 over 3 years, 0.17 over 1 year and 0.08 over 5 years.
Is ZSQR a good diversifier for SPY?
Yes: at 0.04, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of 0.04 mean?
On the −1 to +1 scale, 0.04 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/spy-vs-zsqr.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/spy-vs-zsqr/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: SPY correlations · ZSQR correlations
