CVNA vs XLY: Correlation
How closely do Carvana (CVNA) and Consumer Discretionary Select Sector SPDR Fund (XLY) trade together? Their weekly returns over three years give a correlation of 0.56, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CVNA and XLY?
On 3 years of weekly data the CVNA/XLY correlation comes out at 0.56, moderate. The relationship has been stable: the 1-year correlation (0.65) sits close to the 3-year figure. The 5-year figure is 0.57, and annualized covariance runs at 809.5 %².
XLY is one of the assets that tracks CVNA most closely: it ranks #3 out of the 35 assets we track against CVNA. Neither side won the trailing year by much: +0.8% against -0.1%. The rolling one-year correlation moved between 0.39 and 0.68 over the past three years, a moderate range. Risk is not evenly split, since CVNA carries 3.7 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.
CVNA vs XLY: side by side
| CVNA (Carvana) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +0.8% | -0.1% |
| 5-year return | +9.7% | +31.8% |
| Volatility (ann.) | 73.7% | 19.7% |
| Beta vs S&P 500 | 2.66 | 1.15 |
| Max drawdown (3Y) | -53.5% | -26.0% |
| Market cap | $82.1B | – |
| P/E (trailing) | 39.0 | – |
| 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 | CVNA | XLY |
|---|---|---|
| 2022 | -98.0% | -36.3% |
| 2023 | +1016.9% | +39.6% |
| 2024 | +284.1% | +26.5% |
| 2025 | +107.5% | +7.4% |
| 2026 | -12.2% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 1.32% of XLY is CVNA itself, so the fund partly moves with the stock by construction.
Are CVNA and XLY good diversifiers for each other?
To a limited degree. At 0.56 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 CVNA and XLY?
Using weekly returns as of 2026-08-27: 0.56 over 3 years, with 0.65 over the last year and 0.57 over 5 years.
Is XLY a good diversifier for CVNA?
To a limited degree. At 0.56 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 0.56 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.
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Related comparisons
Hubs: CVNA correlations · XLY correlations
