APP vs XLC: Correlation
Measured on weekly returns over the past three years, AppLovin (APP) and Communication Services Select Sector SPDR Fund (XLC) carry a correlation of 0.52, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are APP and XLC?
On 3 years of weekly data the APP/XLC correlation comes out at 0.52, moderate. Recent behaviour matches the longer record: 0.51 over 1 year against 0.52 over 3. The 5-year figure is 0.53, and annualized covariance runs at 693.2 %².
Within APP's tracked universe of 44 assets, XLC comes in at #18 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLC ahead by 34.0 points (-32.5% versus +1.5%). On a rolling one-year basis the correlation drifted between 0.37 and 0.63, a moderate band. One caveat on sizing: APP is 5.3 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.
APP vs XLC: side by side
| APP (AppLovin) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -32.5% | +1.5% |
| 5-year return | +326.5% | +37.5% |
| Volatility (ann.) | 84.3% | 16.0% |
| Beta vs S&P 500 | 3.10 | 0.90 |
| Max drawdown (3Y) | -59.3% | -18.0% |
| Market cap | $105.0B | – |
| P/E (trailing) | 23.7 | – |
| Dividend yield | 0.00% | 1.32% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $21.7B |
| Sector / category | Communication Services | Sector ETF |
On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Year-by-year returns
| Year | APP | XLC |
|---|---|---|
| 2022 | -88.8% | -37.6% |
| 2023 | +278.4% | +52.8% |
| 2024 | +712.6% | +34.7% |
| 2025 | +108.1% | +23.1% |
| 2026 | -53.6% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 1.3% of XLC is APP itself, so the fund partly moves with the stock by construction.
Are APP and XLC good diversifiers for each other?
To a limited degree. At 0.52 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between APP and XLC?
The APP/XLC correlation stands at 0.52 on a 3-year window (1 year: 0.51, 5 years: 0.53), computed from weekly returns as of 2026-08-27.
Is XLC a good diversifier for APP?
To a limited degree. At 0.52 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.52 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/app-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/app-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: APP correlations · XLC correlations
