ARCO vs XP: Correlation
Measured on weekly returns over the past three years, Arcos Dorados Holdings Inc. Class A Shares (ARCO) and XP Inc. (XP) carry a correlation of 0.48, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARCO and XP?
Over the past 3 years, ARCO and XP moved with a correlation of 0.48, which is moderate. Recent behaviour matches the longer record: 0.54 over 1 year against 0.48 over 3. Over 5 years the correlation is 0.49, and the annualized covariance of weekly returns is 603.8 %².
Among the 10 assets we track against ARCO, XP ranks #4 by 3-year correlation. On 12-month performance ARCO holds a 12.2-point edge, +18.0% against +5.8%.
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.
ARCO vs XP: side by side
| ARCO (Arcos Dorados Holdings Inc. Class A Shares) | XP (XP Inc.) | |
|---|---|---|
| 1-year return | +18.0% | +5.8% |
| 5-year return | +59.4% | -58.9% |
| Volatility (ann.) | 30.6% | 41.0% |
| Beta vs S&P 500 | 0.59 | 1.18 |
| Max drawdown (3Y) | -47.9% | -56.6% |
| Market cap | $1.7B | $9.0B |
| P/E (trailing) | 6.5 | 9.0 |
| Dividend yield | 3.50% | 11.39% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ARCO | XP |
|---|---|---|
| 2022 | +46.3% | -46.6% |
| 2023 | +54.9% | +79.6% |
| 2024 | -41.0% | -52.2% |
| 2025 | +4.1% | +39.5% |
| 2026 | +10.0% | +9.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARCO and XP good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.48 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between ARCO and XP?
The ARCO/XP correlation stands at 0.48 on a 3-year window (1 year: 0.54, 5 years: 0.49), computed from weekly returns as of 2026-08-27.
Is XP a good diversifier for ARCO?
Yes, to a useful degree: a correlation of 0.48 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.48 mean?
On the −1 to +1 scale, 0.48 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.
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Related comparisons
Hubs: ARCO correlations · XP correlations
