LOW vs XLY: Correlation
Measured on weekly returns over the past three years, Lowe's (LOW) and Consumer Discretionary Select Sector SPDR Fund (XLY) carry a correlation of 0.57, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LOW and XLY?
Across a 3-year window, the weekly returns of LOW and XLY correlate at 0.57, moderate. Recent behaviour matches the longer record: 0.49 over 1 year against 0.57 over 3. Stretching to 5 years gives 0.60, with an annualized covariance of 276.6 %².
By 3-year correlation, XLY places #16 of the 46 assets tracked against LOW. Their recent paths diverged sharply: over the last 12 months XLY outperformed by 18.3 percentage points (-18.4% for LOW against -0.1% for XLY). On a rolling one-year basis the correlation drifted between 0.46 and 0.72, 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.
LOW vs XLY: side by side
| LOW (Lowe's) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -18.4% | -0.1% |
| 5-year return | +11.1% | +31.8% |
| Volatility (ann.) | 24.8% | 19.7% |
| Beta vs S&P 500 | 0.83 | 1.15 |
| Max drawdown (3Y) | -29.0% | -26.0% |
| Market cap | – | – |
| P/E (trailing) | 17.8 | – |
| Dividend yield | 2.31% | 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 | LOW | XLY |
|---|---|---|
| 2022 | -21.5% | -36.3% |
| 2023 | +14.0% | +39.6% |
| 2024 | +13.0% | +26.5% |
| 2025 | -0.3% | +7.4% |
| 2026 | -12.9% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLY holds LOW at a 2.94% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are LOW and XLY good diversifiers for each other?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between LOW and XLY?
The LOW/XLY correlation stands at 0.57 on a 3-year window (1 year: 0.49, 5 years: 0.60), computed from weekly returns as of 2026-08-27.
Is XLY a good diversifier for LOW?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.57 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
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Related comparisons
Hubs: LOW correlations · XLY correlations
