KDP vs XLP: Correlation
How closely do Keurig Dr Pepper (KDP) and Consumer Staples Select Sector SPDR Fund (XLP) trade together? Their weekly returns over three years give a correlation of 0.52, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KDP and XLP?
On 3 years of weekly data the KDP/XLP correlation comes out at 0.52, moderate. The relationship has been stable: the 1-year correlation (0.52) sits close to the 3-year figure. The 5-year figure is 0.55, and annualized covariance runs at 136.8 %².
XLP is one of the assets that tracks KDP most closely: it ranks #2 out of the 30 assets we track against KDP. Twelve-month performance is nearly a tie, at +10.9% for KDP and +8.3% for XLP. On a rolling one-year basis the correlation drifted between 0.36 and 0.65, a moderate band. Note the risk asymmetry: KDP runs 2.1 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.
KDP vs XLP: side by side
| KDP (Keurig Dr Pepper) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +10.9% | +8.3% |
| 5-year return | +3.1% | +34.7% |
| Volatility (ann.) | 23.6% | 11.1% |
| Beta vs S&P 500 | 0.14 | 0.23 |
| Max drawdown (3Y) | -31.0% | -9.7% |
| Market cap | $43.4B | – |
| P/E (trailing) | 32.5 | – |
| Dividend yield | 2.86% | 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 | KDP | XLP |
|---|---|---|
| 2022 | -1.2% | -0.8% |
| 2023 | -4.2% | -0.8% |
| 2024 | -1.1% | +12.2% |
| 2025 | -10.1% | +1.5% |
| 2026 | +16.6% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 2.75% of XLP is KDP itself, so the fund partly moves with the stock by construction.
Are KDP and XLP good diversifiers for each other?
Only partially. A correlation of 0.52 means KDP and XLP 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 KDP and XLP?
Using weekly returns as of 2026-08-27: 0.52 over 3 years, with 0.52 over the last year and 0.55 over 5 years.
Is XLP a good diversifier for KDP?
Only partially. A correlation of 0.52 means KDP and XLP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.52 mean?
A reading of 0.52 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
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Related comparisons
Hubs: KDP correlations · XLP correlations
