GOOG vs XLC: Correlation
Alphabet Inc. (Class C) (GOOG) and Communication Services Select Sector SPDR Fund (XLC) show a strong relationship: their 3-year correlation of weekly returns is 0.62.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are GOOG and XLC?
Across a 3-year window, the weekly returns of GOOG and XLC correlate at 0.62, strong. Recent behaviour matches the longer record: 0.67 over 1 year against 0.62 over 3. Stretching to 5 years gives 0.71, with an annualized covariance of 308.6 %².
Few assets follow GOOG as closely as XLC, which ranks #3 of 36 tracked partners. The last year tells two different stories: GOOG led by 61.2 percentage points, +62.7% for GOOG against +1.5% for XLC. The rolling one-year correlation moved between 0.43 and 0.85 over the past three years, a moderate range. Risk is not evenly split, since GOOG carries 1.9 times the volatility of the other side.
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.
GOOG vs XLC: side by side
| GOOG (Alphabet Inc. (Class C)) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +62.7% | +1.5% |
| 5-year return | +134.2% | +37.5% |
| Volatility (ann.) | 31.1% | 16.0% |
| Beta vs S&P 500 | 1.20 | 0.90 |
| Max drawdown (3Y) | -29.4% | -18.0% |
| Market cap | $4,130.2B | – |
| P/E (trailing) | 17.0 | – |
| Dividend yield | 0.25% | 1.32% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $21.7B |
| Sector / category | Communication Services | Sector ETF |
On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Year-by-year returns
| Year | GOOG | XLC |
|---|---|---|
| 2022 | -38.7% | -37.6% |
| 2023 | +58.8% | +52.8% |
| 2024 | +35.6% | +34.7% |
| 2025 | +65.4% | +23.1% |
| 2026 | +7.8% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLC holds GOOG at a 8.22% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are GOOG and XLC good diversifiers for each other?
Only partially. A correlation of 0.62 means GOOG and XLC share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between GOOG and XLC?
The GOOG/XLC correlation stands at 0.62 on a 3-year window (1 year: 0.67, 5 years: 0.71), computed from weekly returns as of 2026-08-27.
Is XLC a good diversifier for GOOG?
Only partially. A correlation of 0.62 means GOOG and XLC share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.62 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/goog-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/goog-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: GOOG correlations · XLC correlations
