GOOGL vs XLC: Correlation
Alphabet Inc. (Class A) (GOOGL) and Communication Services Select Sector SPDR Fund (XLC) show a strong relationship: their 3-year correlation of weekly returns is 0.63.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are GOOGL and XLC?
Across a 3-year window, the weekly returns of GOOGL and XLC correlate at 0.63, strong. The relationship has been stable: the 1-year correlation (0.67) sits close to the 3-year figure. Stretching to 5 years gives 0.71, with an annualized covariance of 313.9 %².
XLC is one of the assets that tracks GOOGL most closely: it ranks #2 out of the 37 assets we track against GOOGL. Their recent paths diverged sharply: over the last 12 months GOOGL outperformed by 63.2 percentage points (+64.7% for GOOGL against +1.5% for XLC). Across three years, the rolling one-year figure varied moderately, from 0.43 to 0.85. Risk is not evenly split, since GOOGL carries 2.0 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.
GOOGL vs XLC: side by side
| GOOGL (Alphabet Inc. (Class A)) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +64.7% | +1.5% |
| 5-year return | +137.7% | +37.5% |
| Volatility (ann.) | 31.4% | 16.0% |
| Beta vs S&P 500 | 1.22 | 0.90 |
| Max drawdown (3Y) | -29.8% | -18.0% |
| Market cap | $4,166.1B | – |
| P/E (trailing) | 17.2 | – |
| 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 | GOOGL | XLC |
|---|---|---|
| 2022 | -39.1% | -37.6% |
| 2023 | +58.3% | +52.8% |
| 2024 | +36.0% | +34.7% |
| 2025 | +66.0% | +23.1% |
| 2026 | +9.0% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 10.29% of XLC is GOOGL itself, so the fund partly moves with the stock by construction.
Are GOOGL and XLC good diversifiers for each other?
Only partially. A correlation of 0.63 means GOOGL 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 GOOGL and XLC?
The GOOGL/XLC correlation stands at 0.63 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 GOOGL?
Only partially. A correlation of 0.63 means GOOGL 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 0.63 mean?
On the −1 to +1 scale, 0.63 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/googl-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/googl-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: GOOGL correlations · XLC correlations
