BBY vs XLY: Correlation
Measured on weekly returns over the past three years, Best Buy (BBY) and Consumer Discretionary Select Sector SPDR Fund (XLY) carry a correlation of 0.38, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BBY and XLY?
On 3 years of weekly data the BBY/XLY correlation comes out at 0.38, moderate. The relationship has been stable: the 1-year correlation (0.29) sits close to the 3-year figure. The 5-year figure is 0.49, and annualized covariance runs at 283.5 %².
Among the 33 assets we track against BBY, XLY ranks #21 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months BBY outperformed by 17.0 percentage points (+16.9% for BBY against -0.1% for XLY). This link changes with the market regime, having swung between 0.12 and 0.66 on a rolling one-year basis. Risk is not evenly split, since BBY carries 1.9 times the volatility of the other side.
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.
BBY vs XLY: side by side
| BBY (Best Buy) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +16.9% | -0.1% |
| 5-year return | -11.2% | +31.8% |
| Volatility (ann.) | 37.6% | 19.7% |
| Beta vs S&P 500 | 0.97 | 1.15 |
| Max drawdown (3Y) | -44.3% | -26.0% |
| Market cap | – | – |
| P/E (trailing) | 16.2 | – |
| 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 | BBY | XLY |
|---|---|---|
| 2022 | -17.5% | -36.3% |
| 2023 | +2.5% | +39.6% |
| 2024 | +14.4% | +26.5% |
| 2025 | -17.8% | +7.4% |
| 2026 | +28.4% | -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 BBY at a 0.43% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are BBY and XLY good diversifiers for each other?
Reasonably. At 0.38, BBY and XLY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between BBY and XLY?
The BBY/XLY correlation stands at 0.38 on a 3-year window (1 year: 0.29, 5 years: 0.49), computed from weekly returns as of 2026-08-27.
Is XLY a good diversifier for BBY?
Reasonably. At 0.38, BBY and XLY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.38 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
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Related comparisons
Hubs: BBY correlations · XLY correlations
