AZO vs XLY: Correlation
Measured on weekly returns over the past three years, AutoZone (AZO) and Consumer Discretionary Select Sector SPDR Fund (XLY) carry a correlation of 0.20, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AZO and XLY?
On 3 years of weekly data the AZO/XLY correlation comes out at 0.20, weak. Little has changed lately, as the 1-year reading of 0.16 lands near the 3-year figure. The 5-year figure is 0.33, and annualized covariance runs at 93.2 %².
Within AZO's tracked universe of 30 assets, XLY comes in at #17 by 3-year correlation. The last year tells two different stories: XLY led by 30.2 percentage points, -30.3% for AZO against -0.1% for XLY. The rolling one-year correlation moved between 0.08 and 0.35 over the past three years, a moderate range.
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 XLY: side by side
| AZO (AutoZone) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -30.3% | -0.1% |
| 5-year return | +88.5% | +31.8% |
| Volatility (ann.) | 23.2% | 19.7% |
| Beta vs S&P 500 | 0.31 | 1.15 |
| Max drawdown (3Y) | -32.9% | -26.0% |
| Market cap | – | – |
| P/E (trailing) | 20.6 | – |
| 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 | AZO | XLY |
|---|---|---|
| 2022 | +17.6% | -36.3% |
| 2023 | +4.8% | +39.6% |
| 2024 | +23.8% | +26.5% |
| 2025 | +5.9% | +7.4% |
| 2026 | -13.5% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLY holds AZO at a 1.23% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are AZO and XLY good diversifiers for each other?
A fair diversifier. At 0.20, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between AZO and XLY?
As of 2026-08-27, the correlation of weekly returns between AZO and XLY is 0.20 over 3 years, 0.16 over 1 year and 0.33 over 5 years.
Is XLY a good diversifier for AZO?
A fair diversifier. At 0.20, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.20 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/azo-vs-xly.json
Markdown for the live badge, attribution link included:
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Related comparisons
Hubs: AZO correlations · XLY correlations
