KMB vs XLP: Correlation
Measured on weekly returns over the past three years, Kimberly-Clark (KMB) 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 KMB and XLP?
Across a 3-year window, the weekly returns of KMB and XLP correlate at 0.51, moderate. The link has loosened recently: the 1-year correlation (0.39) runs below the 3-year figure (0.51). Stretching to 5 years gives 0.65, with an annualized covariance of 110.4 %².
XLP is one of the assets that tracks KMB most closely: it ranks #3 out of the 27 assets we track against KMB. The last year tells two different stories: XLP led by 19.7 percentage points, -11.4% for KMB against +8.3% for XLP. On a rolling one-year basis the correlation drifted between 0.41 and 0.80, a moderate band. Risk is not evenly split, since KMB carries 1.7 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.
KMB vs XLP: side by side
| KMB (Kimberly-Clark) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -11.4% | +8.3% |
| 5-year return | -2.6% | +34.7% |
| Volatility (ann.) | 19.3% | 11.1% |
| Beta vs S&P 500 | 0.15 | 0.23 |
| Max drawdown (3Y) | -34.1% | -9.7% |
| Market cap | $36.6B | – |
| P/E (trailing) | 21.7 | – |
| Dividend yield | 4.60% | 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 | KMB | XLP |
|---|---|---|
| 2022 | -1.6% | -0.8% |
| 2023 | -7.1% | -0.8% |
| 2024 | +11.8% | +12.2% |
| 2025 | -19.9% | +1.5% |
| 2026 | +11.9% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
KMB represents 2.3% of XLP's portfolio, so part of any move in XLP is KMB itself, and the correlation between them is partly mechanical.
Are KMB and XLP good diversifiers for each other?
Only partially. A correlation of 0.51 means KMB 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 KMB and XLP?
The KMB/XLP correlation stands at 0.51 on a 3-year window (1 year: 0.39, 5 years: 0.65), computed from weekly returns as of 2026-08-27.
Is XLP a good diversifier for KMB?
Only partially. A correlation of 0.51 means KMB 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 0.51 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
$ curl https://www.pairbook.io/api/v1/pairs/kmb-vs-xlp.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/kmb-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: KMB correlations · XLP correlations
