KHC vs XLP: Correlation
Measured on weekly returns over the past three years, Kraft Heinz (KHC) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of 0.49, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KHC and XLP?
Across a 3-year window, the weekly returns of KHC and XLP correlate at 0.49, moderate. Recent behaviour matches the longer record: 0.43 over 1 year against 0.49 over 3. Stretching to 5 years gives 0.55, with an annualized covariance of 119.6 %².
Among the 36 assets we track against KHC, XLP ranks #11 by 3-year correlation. Over the last 12 months XLP came out ahead by 12.2 percentage points (-3.9% against +8.3%). Across three years, the rolling one-year figure varied moderately, from 0.37 to 0.67. One caveat on sizing: KHC is 2.0 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
KHC vs XLP: side by side
| KHC (Kraft Heinz) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -3.9% | +8.3% |
| 5-year return | -10.9% | +34.7% |
| Volatility (ann.) | 21.7% | 11.1% |
| Beta vs S&P 500 | 0.12 | 0.23 |
| Max drawdown (3Y) | -38.7% | -9.7% |
| Market cap | $29.8B | – |
| P/E (trailing) | – | – |
| Dividend yield | 6.45% | 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 | KHC | XLP |
|---|---|---|
| 2022 | +18.2% | -0.8% |
| 2023 | -5.0% | -0.8% |
| 2024 | -13.0% | +12.2% |
| 2025 | -16.3% | +1.5% |
| 2026 | +7.3% | +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 KHC at a 1.33% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are KHC and XLP good diversifiers for each other?
A fair diversifier. At 0.49, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between KHC and XLP?
Using weekly returns as of 2026-08-27: 0.49 over 3 years, with 0.43 over the last year and 0.55 over 5 years.
Is XLP a good diversifier for KHC?
A fair diversifier. At 0.49, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.49 mean?
On the −1 to +1 scale, 0.49 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/khc-vs-xlp.json
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[](https://www.pairbook.io/pair/khc-vs-xlp/)
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Related comparisons
Hubs: KHC correlations · XLP correlations
