EW vs XLY: Correlation
Measured on weekly returns over the past three years, Edwards Lifesciences (EW) and Consumer Discretionary Select Sector SPDR Fund (XLY) carry a correlation of 0.40, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EW and XLY?
Across a 3-year window, the weekly returns of EW and XLY correlate at 0.40, moderate. The link has loosened recently: the 1-year correlation (0.29) runs below the 3-year figure (0.40). Stretching to 5 years gives 0.50, with an annualized covariance of 245.2 %².
Within EW's tracked universe of 30 assets, XLY comes in at #7 by 3-year correlation. Over the last 12 months EW came out ahead by 11.3 percentage points (+11.2% against -0.1%). Across three years, the rolling one-year figure varied moderately, from 0.19 to 0.62. Note the risk asymmetry: EW runs 1.6 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.
EW vs XLY: side by side
| EW (Edwards Lifesciences) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +11.2% | -0.1% |
| 5-year return | -23.8% | +31.8% |
| Volatility (ann.) | 31.6% | 19.7% |
| Beta vs S&P 500 | 0.81 | 1.15 |
| Max drawdown (3Y) | -37.5% | -26.0% |
| Market cap | $51.8B | – |
| P/E (trailing) | 54.2 | – |
| Dividend yield | 0.00% | 0.78% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $22.5B |
| Sector / category | Health Care | 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 | EW | XLY |
|---|---|---|
| 2022 | -42.4% | -36.3% |
| 2023 | +2.2% | +39.6% |
| 2024 | -2.9% | +26.5% |
| 2025 | +15.2% | +7.4% |
| 2026 | +5.5% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EW and XLY good diversifiers for each other?
A fair diversifier. At 0.40, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between EW and XLY?
The EW/XLY correlation stands at 0.40 on a 3-year window (1 year: 0.29, 5 years: 0.50), computed from weekly returns as of 2026-08-27.
Is XLY a good diversifier for EW?
A fair diversifier. At 0.40, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.40 mean?
On the −1 to +1 scale, 0.40 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/ew-vs-xly.json
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Related comparisons
Hubs: EW correlations · XLY correlations
