ALGM vs. SPY

Last updated Jun 3, 2026

ALGM (Allegro MicroSystems, Inc.) is a stock, while SPY (State Street SPDR S&P 500 ETF) is S&P 500 fund tracking the S&P 500 Index. Over the past 5 years, ALGM returned 13.88%/yr vs 14.20%/yr for SPY. A 0.60 correlation means they provide meaningful diversification when combined.

Performance

ALGM vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Allegro MicroSystems, Inc. (ALGM) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ALGM achieves a 90.79% return, which is significantly higher than SPY's 11.69% return.

ALGM

• 1D: 6.79%
• 1M: 2.76%
• YTD: 90.79%
• 6M: 89.82%
• 1Y: 94.78%
• 3Y*: 8.43%
• 5Y*: 13.88%
• 10Y*: —

SPY

• 1D: 0.14%
• 1M: 5.40%
• YTD: 11.69%
• 6M: 12.09%
• 1Y: 29.62%
• 3Y*: 22.64%
• 5Y*: 14.20%
• 10Y*: 15.57%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ALGM vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
ALGM Allegro MicroSystems, Inc.	90.79%	20.68%	-27.78%	0.83%	-17.03%	35.71%	50.62%
SPY State Street SPDR S&P 500 ETF	11.69%	17.72%	24.89%	26.18%	-18.18%	28.73%	13.79%

Correlation

The correlation between ALGM and SPY is 0.51, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.51
Correlation (3Y) Calculated over the trailing 3-year period	0.56
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (All Time) Calculated using the full available price history since Oct 30, 2020	0.60

The correlation between ALGM and SPY shifts across timeframes, from 0.51 (1 year) to 0.61 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

ALGM vs. SPY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ALGM

ALGM Risk / Return Rank: 80
ALGM Sharpe Ratio Rank: 85
ALGM Sortino Ratio Rank: 83
ALGM Omega Ratio Rank: 78
ALGM Calmar Ratio Rank: 78
ALGM Martin Ratio Rank: 76

SPY

SPY Risk / Return Rank: 75
SPY Sharpe Ratio Rank: 77
SPY Sortino Ratio Rank: 75
SPY Omega Ratio Rank: 76
SPY Calmar Ratio Rank: 68
SPY Martin Ratio Rank: 80

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ALGM vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Allegro MicroSystems, Inc. (ALGM) and State Street SPDR S&P 500 ETF (SPY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	ALGM	SPY	Difference
Sharpe ratio Return per unit of total volatility	1.80	2.52	-0.72
Sortino ratio Return per unit of downside risk	2.56	3.42	-0.86
Omega ratio Gain probability vs. loss probability	1.30	1.46	-0.16
Calmar ratio Return relative to maximum drawdown	2.51	3.42	-0.90
Martin ratio Return relative to average drawdown	5.29	15.93	-10.63
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ALGM vs. SPY - Sharpe Ratio Comparison

The current ALGM Sharpe Ratio is 1.80, which is comparable to the SPY Sharpe Ratio of 2.52. The chart below compares the historical Sharpe Ratios of ALGM and SPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ALGM	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.80	2.52	-0.72
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	0.84	-0.56
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.87	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.40	0.59	-0.19

Drawdowns

ALGM vs. SPY - Drawdown Comparison

The maximum ALGM drawdown since its inception was -68.65%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for ALGM and SPY.

Drawdown Indicators

	ALGM	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-68.65%	-55.19%	-13.46%
Max Drawdown (1Y) Largest decline over 1 year	-39.22%	-8.88%	-30.34%
Max Drawdown (3Y) Largest decline over 3 years	-68.65%	-18.76%	-49.89%
Max Drawdown (5Y) Largest decline over 5 years	-68.65%	-24.50%	-44.15%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.72%	—
Current Drawdown Current decline from peak	-4.53%	0.00%	-4.53%
Average Drawdown Average peak-to-trough decline	-32.02%	-9.05%	-22.97%
Ulcer Index Depth and duration of drawdowns from previous peaks	18.62%	1.91%	+16.71%

Volatility

ALGM vs. SPY - Volatility Comparison

Allegro MicroSystems, Inc. (ALGM) has a higher volatility of 20.48% compared to State Street SPDR S&P 500 ETF (SPY) at 2.75%. This indicates that ALGM's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ALGM	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	20.48%	2.75%	+17.73%
Volatility (6M) Calculated over the trailing 6-month period	43.40%	8.89%	+34.51%
Volatility (1Y) Calculated over the trailing 1-year period	53.03%	11.81%	+41.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	49.92%	17.05%	+32.87%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	51.46%	17.94%	+33.52%

Dividends

ALGM vs. SPY - Dividend Comparison

ALGM has not paid dividends to shareholders, while SPY's dividend yield for the trailing twelve months is around 0.97%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ALGM Allegro MicroSystems, Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SPY State Street SPDR S&P 500 ETF	0.97%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both ALGM and SPY in my portfolio?

ALGM and SPY have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ALGM or SPY?

ALGM has higher volatility (20.48%) compared to SPY (2.75%). In terms of maximum drawdown, ALGM dropped -68.65% vs SPY's -55.19%.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.52 vs 1.80), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.