HRL vs XLP: Correlation
Hormel Foods (HRL) and Consumer Staples Select Sector SPDR Fund (XLP) show a moderate relationship: their 3-year correlation of weekly returns is 0.38.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HRL and XLP?
Over the past 3 years, HRL and XLP moved with a correlation of 0.38, which is moderate. Little has changed lately, as the 1-year reading of 0.36 lands near the 3-year figure. Over 5 years the correlation is 0.46, and the annualized covariance of weekly returns is 109.3 %².
Among the 35 assets we track against HRL, XLP ranks #5 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLP outperformed by 31.1 percentage points (-22.8% for HRL against +8.3% for XLP). The rolling one-year correlation moved between 0.29 and 0.58 over the past three years, a moderate range. Risk is not evenly split, since HRL carries 2.4 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.
HRL vs XLP: side by side
| HRL (Hormel Foods) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -22.8% | +8.3% |
| 5-year return | -44.3% | +34.7% |
| Volatility (ann.) | 26.1% | 11.1% |
| Beta vs S&P 500 | 0.07 | 0.23 |
| Max drawdown (3Y) | -44.5% | -9.7% |
| Market cap | – | – |
| P/E (trailing) | 28.0 | – |
| Dividend yield | 0.00% | 2.58% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $14.6B |
| Sector / category | Consumer Staples | Sector ETF |
On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Year-by-year returns
| Year | HRL | XLP |
|---|---|---|
| 2022 | -4.7% | -0.8% |
| 2023 | -27.5% | -0.8% |
| 2024 | +1.2% | +12.2% |
| 2025 | -21.3% | +1.5% |
| 2026 | -6.7% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLP holds HRL at a 0.43% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are HRL and XLP good diversifiers for each other?
Reasonably. At 0.38, HRL and XLP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between HRL and XLP?
The HRL/XLP correlation stands at 0.38 on a 3-year window (1 year: 0.36, 5 years: 0.46), computed from weekly returns as of 2026-08-27.
Is XLP a good diversifier for HRL?
Reasonably. At 0.38, HRL and XLP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.38 mean?
On the −1 to +1 scale, 0.38 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/hrl-vs-xlp.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/hrl-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: HRL correlations · XLP correlations
