ELF vs XLY: Correlation
e.l.f. Beauty, Inc. (ELF) and Consumer Discretionary Select Sector SPDR Fund (XLY) show a moderate relationship: their 3-year correlation of weekly returns is 0.45.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ELF and XLY?
Across a 3-year window, the weekly returns of ELF and XLY correlate at 0.45, moderate. The relationship has been stable: the 1-year correlation (0.47) sits close to the 3-year figure. Stretching to 5 years gives 0.41, with an annualized covariance of 602.7 %².
Few assets follow ELF as closely as XLY, which ranks #3 of 14 tracked partners. Over the last 12 months XLY came out ahead by 14.9 percentage points (-15.0% against -0.1%). Note the risk asymmetry: ELF runs 3.4 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.
ELF vs XLY: side by side
| ELF (e.l.f. Beauty, Inc.) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -15.0% | -0.1% |
| 5-year return | +244.4% | +31.8% |
| Volatility (ann.) | 67.7% | 19.7% |
| Beta vs S&P 500 | 2.00 | 1.15 |
| Max drawdown (3Y) | -77.3% | -26.0% |
| Market cap | $6.3B | – |
| P/E (trailing) | 108.3 | – |
| 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 | ELF | XLY |
|---|---|---|
| 2022 | +66.5% | -36.3% |
| 2023 | +161.0% | +39.6% |
| 2024 | -13.0% | +26.5% |
| 2025 | -39.4% | +7.4% |
| 2026 | +39.6% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ELF and XLY good diversifiers for each other?
Reasonably. At 0.45, ELF and XLY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between ELF and XLY?
As of 2026-08-27, the correlation of weekly returns between ELF and XLY is 0.45 over 3 years, 0.47 over 1 year and 0.41 over 5 years.
Is XLY a good diversifier for ELF?
Reasonably. At 0.45, ELF and XLY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.45 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/elf-vs-xly.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/elf-vs-xly/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ELF correlations · XLY correlations
