KR vs XLP: Correlation
Kroger (KR) and Consumer Staples Select Sector SPDR Fund (XLP) show a moderate relationship: their 3-year correlation of weekly returns is 0.40.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KR and XLP?
Across a 3-year window, the weekly returns of KR and XLP correlate at 0.40, moderate. Recent behaviour matches the longer record: 0.45 over 1 year against 0.40 over 3. Stretching to 5 years gives 0.47, with an annualized covariance of 102.9 %².
In KR's tracked universe of 55 assets, XLP sits right near the top at #2. Correlation aside, the last 12 months split them widely, with XLP ahead by 22.7 points (-14.4% versus +8.3%). On a rolling one-year basis the correlation drifted between 0.26 and 0.62, a moderate band. Risk is not evenly split, since KR carries 2.1 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.
KR vs XLP: side by side
| KR (Kroger) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -14.4% | +8.3% |
| 5-year return | +37.3% | +34.7% |
| Volatility (ann.) | 23.4% | 11.1% |
| Beta vs S&P 500 | -0.16 | 0.23 |
| Max drawdown (3Y) | -26.2% | -9.7% |
| Market cap | – | – |
| P/E (trailing) | 33.3 | – |
| Dividend yield | 1.79% | 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 | KR | XLP |
|---|---|---|
| 2022 | +0.4% | -0.8% |
| 2023 | +5.0% | -0.8% |
| 2024 | +36.9% | +12.2% |
| 2025 | +4.3% | +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 KR at a 2.08% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are KR and XLP good diversifiers for each other?
Reasonably. At 0.40, KR and XLP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between KR and XLP?
As of 2026-08-27, the correlation of weekly returns between KR and XLP is 0.40 over 3 years, 0.45 over 1 year and 0.47 over 5 years.
Is XLP a good diversifier for KR?
Reasonably. At 0.40, KR and XLP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.40 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/kr-vs-xlp.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/kr-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: KR correlations · XLP correlations
