LEN vs XLY: Correlation
Measured on weekly returns over the past three years, Lennar (LEN) and Consumer Discretionary Select Sector SPDR Fund (XLY) carry a correlation of 0.41, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LEN and XLY?
Across a 3-year window, the weekly returns of LEN and XLY correlate at 0.41, moderate. Little has changed lately, as the 1-year reading of 0.31 lands near the 3-year figure. Stretching to 5 years gives 0.51, with an annualized covariance of 260.3 %².
Among the 40 assets we track against LEN, XLY ranks #25 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLY outperformed by 34.8 percentage points (-34.9% for LEN against -0.1% for XLY). The relationship is regime-dependent: the rolling one-year correlation swung between 0.25 and 0.77 over the past three years, so this pair behaves very differently depending on the market environment. Risk is not evenly split, since LEN 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.
LEN vs XLY: side by side
| LEN (Lennar) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -34.9% | -0.1% |
| 5-year return | -11.7% | +31.8% |
| Volatility (ann.) | 32.6% | 19.7% |
| Beta vs S&P 500 | 0.84 | 1.15 |
| Max drawdown (3Y) | -54.5% | -26.0% |
| Market cap | $20.5B | – |
| P/E (trailing) | 13.7 | – |
| Dividend yield | 2.29% | 0.78% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $22.5B |
| Sector / category | Consumer Discretionary | Sector ETF |
XLY is a Consumer Cyclical fund from State Street Investment Management: $22.5B under management, 47 holdings, a 0.08% expense ratio, a 0.78% trailing dividend yield.
Year-by-year returns
| Year | LEN | XLY |
|---|---|---|
| 2022 | -20.6% | -36.3% |
| 2023 | +66.9% | +39.6% |
| 2024 | -7.3% | +26.5% |
| 2025 | -20.8% | +7.4% |
| 2026 | -15.9% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
LEN represents 0.47% of XLY's portfolio, so part of any move in XLY is LEN itself, and the correlation between them is partly mechanical.
Are LEN and XLY good diversifiers for each other?
A fair diversifier. At 0.41, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between LEN and XLY?
As of 2026-08-27, the correlation of weekly returns between LEN and XLY is 0.41 over 3 years, 0.31 over 1 year and 0.51 over 5 years.
Is XLY a good diversifier for LEN?
A fair diversifier. At 0.41, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.41 mean?
On the −1 to +1 scale, 0.41 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/len-vs-xly.json
Markdown for the live badge, attribution link included:
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Related comparisons
Hubs: LEN correlations · XLY correlations
