HD vs XLY: Correlation
Home Depot (The) (HD) and Consumer Discretionary Select Sector SPDR Fund (XLY) 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 HD and XLY?
On 3 years of weekly data the HD/XLY correlation comes out at 0.63, strong. Recent behaviour matches the longer record: 0.60 over 1 year against 0.63 over 3. The 5-year figure is 0.62, and annualized covariance runs at 293.4 %².
By 3-year correlation, XLY places #18 of the 54 assets tracked against HD. Correlation aside, the last 12 months split them widely, with XLY ahead by 17.3 points (-17.4% versus -0.1%). The rolling one-year correlation stayed in a tight band between 0.55 and 0.75 over the past three years, which points to a structural rather than episodic relationship.
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.
HD vs XLY: side by side
| HD (Home Depot (The)) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -17.4% | -0.1% |
| 5-year return | +13.8% | +31.8% |
| Volatility (ann.) | 23.6% | 19.7% |
| Beta vs S&P 500 | 0.87 | 1.15 |
| Max drawdown (3Y) | -28.8% | -26.0% |
| Market cap | $327.9B | – |
| P/E (trailing) | 23.4 | – |
| Dividend yield | 1.38% | 0.78% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $22.5B |
| Sector / category | Consumer Discretionary | 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 | HD | XLY |
|---|---|---|
| 2022 | -22.0% | -36.3% |
| 2023 | +12.8% | +39.6% |
| 2024 | +15.0% | +26.5% |
| 2025 | -9.3% | +7.4% |
| 2026 | -3.1% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 5.54% of XLY is HD itself, so the fund partly moves with the stock by construction.
Are HD and XLY good diversifiers for each other?
To a limited degree. At 0.63 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between HD and XLY?
The HD/XLY correlation stands at 0.63 on a 3-year window (1 year: 0.60, 5 years: 0.62), computed from weekly returns as of 2026-08-27.
Is XLY a good diversifier for HD?
To a limited degree. At 0.63 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.63 mean?
A reading of 0.63 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/hd-vs-xly.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/hd-vs-xly/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: HD correlations · XLY correlations
