ARLO vs XLY: Correlation
Arlo Technologies, Inc. (ARLO) and Consumer Discretionary Select Sector SPDR Fund (XLY) show a moderate relationship: their 3-year correlation of weekly returns is 0.50.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARLO and XLY?
Across a 3-year window, the weekly returns of ARLO and XLY correlate at 0.50, moderate. Recent behaviour matches the longer record: 0.47 over 1 year against 0.50 over 3. Stretching to 5 years gives 0.36, with an annualized covariance of 604.3 %².
Few assets follow ARLO as closely as XLY, which ranks #3 of 13 tracked partners. Correlation aside, the last 12 months split them widely, with XLY ahead by 25.6 points (-25.7% versus -0.1%). Note the risk asymmetry: ARLO runs 3.1 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
ARLO vs XLY: side by side
| ARLO (Arlo Technologies, Inc.) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -25.7% | -0.1% |
| 5-year return | +113.6% | +31.8% |
| Volatility (ann.) | 61.4% | 19.7% |
| Beta vs S&P 500 | 1.84 | 1.15 |
| Max drawdown (3Y) | -50.8% | -26.0% |
| Market cap | $1.4B | – |
| P/E (trailing) | 46.7 | – |
| Dividend yield | 0.00% | 0.78% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $22.5B |
| Sector / category | US Listed | 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 | ARLO | XLY |
|---|---|---|
| 2022 | -66.5% | -36.3% |
| 2023 | +171.2% | +39.6% |
| 2024 | +17.5% | +26.5% |
| 2025 | +25.0% | +7.4% |
| 2026 | -6.6% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARLO and XLY good diversifiers for each other?
To a limited degree. At 0.50 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 ARLO and XLY?
The ARLO/XLY correlation stands at 0.50 on a 3-year window (1 year: 0.47, 5 years: 0.36), computed from weekly returns as of 2026-08-27.
Is XLY a good diversifier for ARLO?
To a limited degree. At 0.50 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 0.50 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/arlo-vs-xly.json
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Related comparisons
Hubs: ARLO correlations · XLY correlations
