AZO vs XLP: Correlation
AutoZone (AZO) and Consumer Staples Select Sector SPDR Fund (XLP) show a moderate relationship: their 3-year correlation of weekly returns is 0.37.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AZO and XLP?
Across a 3-year window, the weekly returns of AZO and XLP correlate at 0.37, moderate. Little has changed lately, as the 1-year reading of 0.46 lands near the 3-year figure. Stretching to 5 years gives 0.53, with an annualized covariance of 94.5 %².
Within AZO's tracked universe of 30 assets, XLP comes in at #9 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLP ahead by 38.6 points (-30.3% versus +8.3%). On a rolling one-year basis the correlation drifted between 0.14 and 0.60, a moderate band. Note the risk asymmetry: AZO runs 2.1 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.
AZO vs XLP: side by side
| AZO (AutoZone) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -30.3% | +8.3% |
| 5-year return | +88.5% | +34.7% |
| Volatility (ann.) | 23.2% | 11.1% |
| Beta vs S&P 500 | 0.31 | 0.23 |
| Max drawdown (3Y) | -32.9% | -9.7% |
| Market cap | – | – |
| P/E (trailing) | 20.6 | – |
| Dividend yield | 0.00% | 2.58% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $14.6B |
| Sector / category | Consumer Discretionary | 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 | AZO | XLP |
|---|---|---|
| 2022 | +17.6% | -0.8% |
| 2023 | +4.8% | -0.8% |
| 2024 | +23.8% | +12.2% |
| 2025 | +5.9% | +1.5% |
| 2026 | -13.5% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AZO and XLP good diversifiers for each other?
Reasonably. At 0.37, AZO and XLP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between AZO and XLP?
As of 2026-08-27, the correlation of weekly returns between AZO and XLP is 0.37 over 3 years, 0.46 over 1 year and 0.53 over 5 years.
Is XLP a good diversifier for AZO?
Reasonably. At 0.37, AZO and XLP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.37 mean?
On the −1 to +1 scale, 0.37 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/azo-vs-xlp.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/azo-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: AZO correlations · XLP correlations
