HSY vs XLP: Correlation
Measured on weekly returns over the past three years, Hershey Company (The) (HSY) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of 0.51, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HSY and XLP?
Over the past 3 years, HSY and XLP moved with a correlation of 0.51, which is moderate. Little has changed lately, as the 1-year reading of 0.56 lands near the 3-year figure. Over 5 years the correlation is 0.54, and the annualized covariance of weekly returns is 144.5 %².
XLP is one of the assets that tracks HSY most closely: it ranks #1 out of the 30 assets we track against HSY. The trailing year gives XLP the advantage: +2.8% versus +8.3%, a 5.5-point spread. Stability stands out here, with the rolling one-year correlation confined to 0.41 through 0.65. Risk is not evenly split, since HSY carries 2.3 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.
HSY vs XLP: side by side
| HSY (Hershey Company (The)) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +2.8% | +8.3% |
| 5-year return | +16.5% | +34.7% |
| Volatility (ann.) | 25.6% | 11.1% |
| Beta vs S&P 500 | 0.03 | 0.23 |
| Max drawdown (3Y) | -31.2% | -9.7% |
| Market cap | $36.4B | – |
| P/E (trailing) | 25.3 | – |
| Dividend yield | 3.05% | 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 | HSY | XLP |
|---|---|---|
| 2022 | +21.9% | -0.8% |
| 2023 | -17.9% | -0.8% |
| 2024 | -6.5% | +12.2% |
| 2025 | +11.0% | +1.5% |
| 2026 | +1.9% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 1.72% of XLP is HSY itself, so the fund partly moves with the stock by construction.
Are HSY and XLP good diversifiers for each other?
To a limited degree. At 0.51 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 HSY and XLP?
As of 2026-08-27, the correlation of weekly returns between HSY and XLP is 0.51 over 3 years, 0.56 over 1 year and 0.54 over 5 years.
Is XLP a good diversifier for HSY?
To a limited degree. At 0.51 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 0.51 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
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Related comparisons
Hubs: HSY correlations · XLP correlations
