DFNS vs XLC: Correlation
How closely do T3 Defense Inc. (DFNS) and Communication Services Select Sector SPDR Fund (XLC) trade together? Their weekly returns over three years give a correlation of -0.18, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DFNS and XLC?
Across a 3-year window, the weekly returns of DFNS and XLC correlate at -0.18, negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.25 over 1 year against -0.18 over 3. Stretching to 5 years gives -0.11, with an annualized covariance of -17199.9 %².
Within DFNS's tracked universe of 44 assets, XLC comes in at #15 by 3-year correlation. The last year tells two different stories: DFNS led by 192.0 percentage points, +193.5% for DFNS against +1.5% for XLC. Risk is not evenly split, since DFNS carries 383.5 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.
DFNS vs XLC: side by side
| DFNS (T3 Defense Inc.) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +193.5% | +1.5% |
| 5-year return | -77.9% | +37.5% |
| Volatility (ann.) | 6136.1% | 16.0% |
| Beta vs S&P 500 | -23.33 | 0.90 |
| Max drawdown (3Y) | -99.9% | -18.0% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 1.32% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $21.7B |
| Sector / category | US Listed | Sector ETF |
On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Year-by-year returns
| Year | DFNS | XLC |
|---|---|---|
| 2022 | +5.0% | -37.6% |
| 2023 | -62.5% | +52.8% |
| 2024 | +59.9% | +34.7% |
| 2025 | -89.0% | +23.1% |
| 2026 | +215.4% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DFNS and XLC good diversifiers for each other?
Yes: at -0.18, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between DFNS and XLC?
The DFNS/XLC correlation stands at -0.18 on a 3-year window (1 year: -0.25, 5 years: -0.11), computed from weekly returns as of 2026-08-27.
Is XLC a good diversifier for DFNS?
Yes: at -0.18, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.18 mean?
A reading of -0.18 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/dfns-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/dfns-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: DFNS correlations · XLC correlations
