GOOG vs XLY: Correlation
Alphabet Inc. (Class C) (GOOG) and Consumer Discretionary Select Sector SPDR Fund (XLY) show a moderate relationship: their 3-year correlation of weekly returns is 0.55.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are GOOG and XLY?
Over the past 3 years, GOOG and XLY moved with a correlation of 0.55, which is moderate. Recent behaviour matches the longer record: 0.61 over 1 year against 0.55 over 3. Over 5 years the correlation is 0.58, and the annualized covariance of weekly returns is 333.6 %².
Within GOOG's tracked universe of 36 assets, XLY comes in at #12 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months GOOG outperformed by 62.8 percentage points (+62.7% for GOOG against -0.1% for XLY). Across three years, the rolling one-year figure varied moderately, from 0.24 to 0.64. Note the risk asymmetry: GOOG 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.
GOOG vs XLY: side by side
| GOOG (Alphabet Inc. (Class C)) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +62.7% | -0.1% |
| 5-year return | +134.2% | +31.8% |
| Volatility (ann.) | 31.1% | 19.7% |
| Beta vs S&P 500 | 1.20 | 1.15 |
| Max drawdown (3Y) | -29.4% | -26.0% |
| Market cap | $4,130.2B | – |
| P/E (trailing) | 17.0 | – |
| Dividend yield | 0.25% | 0.78% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $22.5B |
| Sector / category | Communication Services | 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 | GOOG | XLY |
|---|---|---|
| 2022 | -38.7% | -36.3% |
| 2023 | +58.8% | +39.6% |
| 2024 | +35.6% | +26.5% |
| 2025 | +65.4% | +7.4% |
| 2026 | +7.8% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are GOOG and XLY good diversifiers for each other?
Only partially. A correlation of 0.55 means GOOG and XLY 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 XLY?
The GOOG/XLY correlation stands at 0.55 on a 3-year window (1 year: 0.61, 5 years: 0.58), computed from weekly returns as of 2026-08-27.
Is XLY a good diversifier for GOOG?
Only partially. A correlation of 0.55 means GOOG and XLY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.55 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-xly.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/goog-vs-xly/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: GOOG correlations · XLY correlations
