DFNS vs XLY: Correlation
How closely do T3 Defense Inc. (DFNS) and Consumer Discretionary Select Sector SPDR Fund (XLY) trade together? Their weekly returns over three years give a correlation of -0.17, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DFNS and XLY?
On 3 years of weekly data the DFNS/XLY correlation comes out at -0.17, negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.26 over 1 year against -0.17 over 3. The 5-year figure is -0.11, and annualized covariance runs at -20010.2 %².
Among the 44 assets we track against DFNS, XLY ranks #13 by 3-year correlation. Correlation aside, the last 12 months split them widely, with DFNS ahead by 193.6 points (+193.5% versus -0.1%). Note the risk asymmetry: DFNS runs 311.5 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 XLY: side by side
| DFNS (T3 Defense Inc.) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +193.5% | -0.1% |
| 5-year return | -77.9% | +31.8% |
| Volatility (ann.) | 6136.1% | 19.7% |
| Beta vs S&P 500 | -23.33 | 1.15 |
| Max drawdown (3Y) | -99.9% | -26.0% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 0.78% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $22.5B |
| Sector / category | US Listed | 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 | DFNS | XLY |
|---|---|---|
| 2022 | +5.0% | -36.3% |
| 2023 | -62.5% | +39.6% |
| 2024 | +59.9% | +26.5% |
| 2025 | -89.0% | +7.4% |
| 2026 | +215.4% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DFNS and XLY good diversifiers for each other?
By historical standards, yes. A correlation of -0.17 means the two rarely move for the same reasons.
FAQ
What is the correlation between DFNS and XLY?
As of 2026-08-27, the correlation of weekly returns between DFNS and XLY is -0.17 over 3 years, -0.26 over 1 year and -0.11 over 5 years.
Is XLY a good diversifier for DFNS?
By historical standards, yes. A correlation of -0.17 means the two rarely move for the same reasons.
What does a correlation of -0.17 mean?
A reading of -0.17 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-xly.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/dfns-vs-xly/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: DFNS correlations · XLY correlations
