EL vs XLP: Correlation
Estée Lauder Companies (The) (EL) and Consumer Staples Select Sector SPDR Fund (XLP) show a weak relationship: their 3-year correlation of weekly returns is 0.22.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EL and XLP?
Over the past 3 years, EL and XLP moved with a correlation of 0.22, which is weak. The link has loosened recently: the 1-year correlation (0.09) runs below the 3-year figure (0.22). Over 5 years the correlation is 0.31, and the annualized covariance of weekly returns is 113.6 %².
Within EL's tracked universe of 35 assets, XLP comes in at #25 by 3-year correlation. On 12-month performance EL holds a 8.1-point edge, +16.4% against +8.3%. The rolling one-year correlation moved between 0.11 and 0.43 over the past three years, a moderate range. One caveat on sizing: EL is 4.2 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
EL vs XLP: side by side
| EL (Estée Lauder Companies (The)) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +16.4% | +8.3% |
| 5-year return | -66.7% | +34.7% |
| Volatility (ann.) | 47.0% | 11.1% |
| Beta vs S&P 500 | 1.28 | 0.23 |
| Max drawdown (3Y) | -68.4% | -9.7% |
| Market cap | $38.4B | – |
| P/E (trailing) | 208.3 | – |
| Dividend yield | 1.33% | 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 | EL | XLP |
|---|---|---|
| 2022 | -32.3% | -0.8% |
| 2023 | -40.1% | -0.8% |
| 2024 | -47.6% | +12.2% |
| 2025 | +42.1% | +1.5% |
| 2026 | +2.1% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
EL represents 1.63% of XLP's portfolio, so part of any move in XLP is EL itself, and the correlation between them is partly mechanical.
Are EL and XLP good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.22 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between EL and XLP?
The EL/XLP correlation stands at 0.22 on a 3-year window (1 year: 0.09, 5 years: 0.31), computed from weekly returns as of 2026-08-27.
Is XLP a good diversifier for EL?
Yes, to a useful degree: a correlation of 0.22 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.22 mean?
On the −1 to +1 scale, 0.22 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/el-vs-xlp.json
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Related comparisons
Hubs: EL correlations · XLP correlations
