CL vs XLP: Correlation
How closely do Colgate-Palmolive (CL) and Consumer Staples Select Sector SPDR Fund (XLP) trade together? Their weekly returns over three years give a correlation of 0.71, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CL and XLP?
Over the past 3 years, CL and XLP moved with a correlation of 0.71, which is strong. Little has changed lately, as the 1-year reading of 0.70 lands near the 3-year figure. Over 5 years the correlation is 0.74, and the annualized covariance of weekly returns is 133.3 %².
XLP is one of the assets that tracks CL most closely: it ranks #2 out of the 40 assets we track against CL. Twelve-month performance is nearly a tie, at +10.4% for CL and +8.3% for XLP. The link looks structural: the rolling one-year correlation barely moved, holding between 0.66 and 0.82. One caveat on sizing: CL is 1.5 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
CL vs XLP: side by side
| CL (Colgate-Palmolive) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +10.4% | +8.3% |
| 5-year return | +32.0% | +34.7% |
| Volatility (ann.) | 16.9% | 11.1% |
| Beta vs S&P 500 | 0.17 | 0.23 |
| Max drawdown (3Y) | -29.0% | -9.7% |
| Market cap | $72.5B | – |
| P/E (trailing) | 36.2 | – |
| Dividend yield | 2.27% | 2.58% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $14.6B |
| Sector / category | Consumer Staples | 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 | CL | XLP |
|---|---|---|
| 2022 | -5.4% | -0.8% |
| 2023 | +3.8% | -0.8% |
| 2024 | +16.6% | +12.2% |
| 2025 | -11.0% | +1.5% |
| 2026 | +17.2% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLP holds CL at a 4.56% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are CL and XLP good diversifiers for each other?
To a limited degree. At 0.71 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 CL and XLP?
As of 2026-08-27, the correlation of weekly returns between CL and XLP is 0.71 over 3 years, 0.70 over 1 year and 0.74 over 5 years.
Is XLP a good diversifier for CL?
To a limited degree. At 0.71 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 0.71 mean?
A reading of 0.71 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/cl-vs-xlp.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cl-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: CL correlations · XLP correlations
