CMG vs XLY: Correlation
How closely do Chipotle Mexican Grill (CMG) and Consumer Discretionary Select Sector SPDR Fund (XLY) trade together? Their weekly returns over three years give a correlation of 0.44, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CMG and XLY?
Across a 3-year window, the weekly returns of CMG and XLY correlate at 0.44, moderate. Recent behaviour matches the longer record: 0.44 over 1 year against 0.44 over 3. Stretching to 5 years gives 0.51, with an annualized covariance of 308.6 %².
By 3-year correlation, XLY places #8 of the 36 assets tracked against CMG. Over the last 12 months XLY came out ahead by 12.6 percentage points (-12.7% against -0.1%). The rolling one-year correlation moved between 0.30 and 0.58 over the past three years, a moderate range. Risk is not evenly split, since CMG carries 1.8 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.
CMG vs XLY: side by side
| CMG (Chipotle Mexican Grill) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -12.7% | -0.1% |
| 5-year return | -2.9% | +31.8% |
| Volatility (ann.) | 35.7% | 19.7% |
| Beta vs S&P 500 | 0.89 | 1.15 |
| Max drawdown (3Y) | -58.9% | -26.0% |
| Market cap | $47.1B | – |
| P/E (trailing) | 34.5 | – |
| 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 | CMG | XLY |
|---|---|---|
| 2022 | -20.6% | -36.3% |
| 2023 | +64.8% | +39.6% |
| 2024 | +31.8% | +26.5% |
| 2025 | -38.6% | +7.4% |
| 2026 | +0.6% | -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 CMG at a 1.19% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are CMG and XLY good diversifiers for each other?
Reasonably. At 0.44, CMG and XLY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between CMG and XLY?
Using weekly returns as of 2026-08-27: 0.44 over 3 years, with 0.44 over the last year and 0.51 over 5 years.
Is XLY a good diversifier for CMG?
Reasonably. At 0.44, CMG and XLY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.44 mean?
On the −1 to +1 scale, 0.44 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
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Related comparisons
Hubs: CMG correlations · XLY correlations
