ADM vs XLP: Correlation
Measured on weekly returns over the past three years, Archer Daniels Midland (ADM) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of 0.36, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ADM and XLP?
On 3 years of weekly data the ADM/XLP correlation comes out at 0.36, moderate. Recent behaviour matches the longer record: 0.41 over 1 year against 0.36 over 3. The 5-year figure is 0.34, and annualized covariance runs at 121.1 %².
Among the 33 assets we track against ADM, XLP ranks #15 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months ADM outperformed by 21.5 percentage points (+29.8% for ADM against +8.3% for XLP). On a rolling one-year basis the correlation drifted between 0.17 and 0.58, a moderate band. Risk is not evenly split, since ADM carries 2.7 times the volatility of the other side.
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.
ADM vs XLP: side by side
| ADM (Archer Daniels Midland) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +29.8% | +8.3% |
| 5-year return | +51.7% | +34.7% |
| Volatility (ann.) | 29.9% | 11.1% |
| Beta vs S&P 500 | 0.24 | 0.23 |
| Max drawdown (3Y) | -46.0% | -9.7% |
| Market cap | $38.1B | – |
| P/E (trailing) | 21.9 | – |
| Dividend yield | 2.57% | 2.58% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $14.6B |
| Sector / category | Consumer Staples | Sector ETF |
On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Year-by-year returns
| Year | ADM | XLP |
|---|---|---|
| 2022 | +40.0% | -0.8% |
| 2023 | -20.4% | -0.8% |
| 2024 | -27.5% | +12.2% |
| 2025 | +18.2% | +1.5% |
| 2026 | +40.4% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 2.42% of XLP is ADM itself, so the fund partly moves with the stock by construction.
Are ADM and XLP good diversifiers for each other?
Reasonably. At 0.36, ADM and XLP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between ADM and XLP?
As of 2026-08-27, the correlation of weekly returns between ADM and XLP is 0.36 over 3 years, 0.41 over 1 year and 0.34 over 5 years.
Is XLP a good diversifier for ADM?
Reasonably. At 0.36, ADM and XLP 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
$ curl https://www.pairbook.io/api/v1/pairs/adm-vs-xlp.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/adm-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ADM correlations · XLP correlations
