AMZN vs XLY: Correlation
How closely do Amazon (AMZN) and Consumer Discretionary Select Sector SPDR Fund (XLY) trade together? Their weekly returns over three years give a correlation of 0.76, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AMZN and XLY?
Over the past 3 years, AMZN and XLY moved with a correlation of 0.76, which is strong. The relationship has been stable: the 1-year correlation (0.74) sits close to the 3-year figure. Over 5 years the correlation is 0.78, and the annualized covariance of weekly returns is 465.1 %².
In AMZN's tracked universe of 38 assets, XLY sits right near the top at #1. The trailing year gives AMZN the advantage: +11.8% versus -0.1%, a 11.9-point spread. The link looks structural: the rolling one-year correlation barely moved, holding between 0.67 and 0.83. Risk is not evenly split, since AMZN carries 1.6 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.
AMZN vs XLY: side by side
| AMZN (Amazon) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +11.8% | -0.1% |
| 5-year return | +49.8% | +31.8% |
| Volatility (ann.) | 31.0% | 19.7% |
| Beta vs S&P 500 | 1.48 | 1.15 |
| Max drawdown (3Y) | -30.9% | -26.0% |
| Market cap | $2,764.1B | – |
| P/E (trailing) | 20.9 | – |
| Dividend yield | 0.00% | 0.78% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $22.5B |
| Sector / category | Consumer Discretionary | Sector ETF |
XLY is a Consumer Cyclical fund from State Street Investment Management: $22.5B under management, 47 holdings, a 0.08% expense ratio, a 0.78% trailing dividend yield.
Year-by-year returns
| Year | AMZN | XLY |
|---|---|---|
| 2022 | -49.6% | -36.3% |
| 2023 | +80.9% | +39.6% |
| 2024 | +44.4% | +26.5% |
| 2025 | +5.2% | +7.4% |
| 2026 | +11.0% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 24.32% of XLY is AMZN itself, so the fund partly moves with the stock by construction.
Are AMZN and XLY good diversifiers for each other?
Only partially. A correlation of 0.76 means AMZN and XLY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between AMZN and XLY?
As of 2026-08-27, the correlation of weekly returns between AMZN and XLY is 0.76 over 3 years, 0.74 over 1 year and 0.78 over 5 years.
Is XLY a good diversifier for AMZN?
Only partially. A correlation of 0.76 means AMZN and XLY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.76 mean?
On the −1 to +1 scale, 0.76 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/amzn-vs-xly.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/amzn-vs-xly/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: AMZN correlations · XLY correlations
