DG vs XLP: Correlation
Measured on weekly returns over the past three years, Dollar General (DG) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of 0.16, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DG and XLP?
Across a 3-year window, the weekly returns of DG and XLP correlate at 0.16, weak. The link has tightened recently: the 1-year correlation (0.33) runs above the 3-year figure (0.16). Stretching to 5 years gives 0.35, with an annualized covariance of 68.5 %².
Among the 32 assets we track against DG, XLP ranks #20 by 3-year correlation. The trailing year gives DG the advantage: +15.5% versus +8.3%, a 7.2-point spread. The rolling one-year correlation moved between -0.09 and 0.38 over the past three years, a moderate range. Note the risk asymmetry: DG runs 3.5 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.
DG vs XLP: side by side
| DG (Dollar General) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +15.5% | +8.3% |
| 5-year return | -39.3% | +34.7% |
| Volatility (ann.) | 38.5% | 11.1% |
| Beta vs S&P 500 | 0.11 | 0.23 |
| Max drawdown (3Y) | -56.6% | -9.7% |
| Market cap | $27.8B | – |
| P/E (trailing) | 17.4 | – |
| Dividend yield | 0.00% | 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 | DG | XLP |
|---|---|---|
| 2022 | +5.6% | -0.8% |
| 2023 | -44.1% | -0.8% |
| 2024 | -43.1% | +12.2% |
| 2025 | +79.6% | +1.5% |
| 2026 | -3.8% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
DG represents 1.7% of XLP's portfolio, so part of any move in XLP is DG itself, and the correlation between them is partly mechanical.
Are DG and XLP good diversifiers for each other?
Yes: at 0.16, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between DG and XLP?
Using weekly returns as of 2026-08-27: 0.16 over 3 years, with 0.33 over the last year and 0.35 over 5 years.
Is XLP a good diversifier for DG?
Yes: at 0.16, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of 0.16 mean?
On the −1 to +1 scale, 0.16 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
$ curl https://www.pairbook.io/api/v1/pairs/dg-vs-xlp.json
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[](https://www.pairbook.io/pair/dg-vs-xlp/)
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Related comparisons
Hubs: DG correlations · XLP correlations
