KO vs XLP: Correlation
Measured on weekly returns over the past three years, Coca-Cola Company (The) (KO) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of 0.69, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KO and XLP?
Across a 3-year window, the weekly returns of KO and XLP correlate at 0.69, strong. Recent behaviour matches the longer record: 0.67 over 1 year against 0.69 over 3. Stretching to 5 years gives 0.79, with an annualized covariance of 117.5 %².
Few assets follow KO as closely as XLP, which ranks #1 of 43 tracked partners. Their recent paths diverged sharply: over the last 12 months KO outperformed by 24.8 percentage points (+33.1% for KO against +8.3% for XLP). On a rolling one-year basis the correlation drifted between 0.61 and 0.88, a moderate band.
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.
KO vs XLP: side by side
| KO (Coca-Cola Company (The)) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +33.1% | +8.3% |
| 5-year return | +83.8% | +34.7% |
| Volatility (ann.) | 15.4% | 11.1% |
| Beta vs S&P 500 | 0.11 | 0.23 |
| Max drawdown (3Y) | -15.5% | -9.7% |
| Market cap | $383.2B | – |
| P/E (trailing) | 27.0 | – |
| Dividend yield | 2.31% | 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 | KO | XLP |
|---|---|---|
| 2022 | +10.6% | -0.8% |
| 2023 | -4.4% | -0.8% |
| 2024 | +8.9% | +12.2% |
| 2025 | +15.6% | +1.5% |
| 2026 | +29.1% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 7.34% of XLP is KO itself, so the fund partly moves with the stock by construction.
Are KO and XLP good diversifiers for each other?
To a limited degree. At 0.69 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 KO and XLP?
As of 2026-08-27, the correlation of weekly returns between KO and XLP is 0.69 over 3 years, 0.67 over 1 year and 0.79 over 5 years.
Is XLP a good diversifier for KO?
To a limited degree. At 0.69 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 0.69 mean?
A reading of 0.69 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
$ curl https://www.pairbook.io/api/v1/pairs/ko-vs-xlp.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ko-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: KO correlations · XLP correlations
