GOOGL vs XLY: Correlation
How closely do Alphabet Inc. (Class A) (GOOGL) and Consumer Discretionary Select Sector SPDR Fund (XLY) trade together? Their weekly returns over three years give a correlation of 0.55, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are GOOGL and XLY?
Across a 3-year window, the weekly returns of GOOGL and XLY correlate at 0.55, moderate. Little has changed lately, as the 1-year reading of 0.61 lands near the 3-year figure. Stretching to 5 years gives 0.58, with an annualized covariance of 337.9 %².
Among the 37 assets we track against GOOGL, XLY ranks #13 by 3-year correlation. Correlation aside, the last 12 months split them widely, with GOOGL ahead by 64.8 points (+64.7% versus -0.1%). The rolling one-year correlation moved between 0.25 and 0.64 over the past three years, a moderate range. Note the risk asymmetry: GOOGL 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.
GOOGL vs XLY: side by side
| GOOGL (Alphabet Inc. (Class A)) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +64.7% | -0.1% |
| 5-year return | +137.7% | +31.8% |
| Volatility (ann.) | 31.4% | 19.7% |
| Beta vs S&P 500 | 1.22 | 1.15 |
| Max drawdown (3Y) | -29.8% | -26.0% |
| Market cap | $4,166.1B | – |
| P/E (trailing) | 17.2 | – |
| 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 | GOOGL | XLY |
|---|---|---|
| 2022 | -39.1% | -36.3% |
| 2023 | +58.3% | +39.6% |
| 2024 | +36.0% | +26.5% |
| 2025 | +66.0% | +7.4% |
| 2026 | +9.0% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are GOOGL and XLY good diversifiers for each other?
Somewhat, no more. With 0.55 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between GOOGL and XLY?
The GOOGL/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 GOOGL?
Somewhat, no more. With 0.55 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.55 mean?
A reading of 0.55 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/googl-vs-xly.json
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Related comparisons
Hubs: GOOGL correlations · XLY correlations
