DRI vs XLY: Correlation
How closely do Darden Restaurants (DRI) and Consumer Discretionary Select Sector SPDR Fund (XLY) trade together? Their weekly returns over three years give a correlation of 0.32, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DRI and XLY?
On 3 years of weekly data the DRI/XLY correlation comes out at 0.32, moderate. Little has changed lately, as the 1-year reading of 0.35 lands near the 3-year figure. The 5-year figure is 0.44, and annualized covariance runs at 156.2 %².
Among the 34 assets we track against DRI, XLY ranks #22 by 3-year correlation. The trailing year gives DRI the advantage: +5.6% versus -0.1%, a 5.7-point spread. On a rolling one-year basis the correlation drifted between 0.14 and 0.52, a moderate band.
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.
DRI vs XLY: side by side
| DRI (Darden Restaurants) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +5.6% | -0.1% |
| 5-year return | +66.1% | +31.8% |
| Volatility (ann.) | 25.2% | 19.7% |
| Beta vs S&P 500 | 0.52 | 1.15 |
| Max drawdown (3Y) | -23.9% | -26.0% |
| Market cap | $24.0B | – |
| P/E (trailing) | 21.0 | – |
| Dividend yield | 2.74% | 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 | DRI | XLY |
|---|---|---|
| 2022 | -4.8% | -36.3% |
| 2023 | +22.8% | +39.6% |
| 2024 | +17.7% | +26.5% |
| 2025 | +1.6% | +7.4% |
| 2026 | +17.4% | -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 DRI at a 0.62% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are DRI and XLY good diversifiers for each other?
Reasonably. At 0.32, DRI and XLY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between DRI and XLY?
Using weekly returns as of 2026-08-27: 0.32 over 3 years, with 0.35 over the last year and 0.44 over 5 years.
Is XLY a good diversifier for DRI?
Reasonably. At 0.32, DRI and XLY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.32 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dri-vs-xly.json
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Related comparisons
Hubs: DRI correlations · XLY correlations
