LULU vs XLY: Correlation
How closely do Lululemon Athletica (LULU) and Consumer Discretionary Select Sector SPDR Fund (XLY) trade together? Their weekly returns over three years give a correlation of 0.45, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LULU and XLY?
Over the past 3 years, LULU and XLY moved with a correlation of 0.45, which is moderate. Little has changed lately, as the 1-year reading of 0.45 lands near the 3-year figure. Over 5 years the correlation is 0.54, and the annualized covariance of weekly returns is 371.0 %².
By 3-year correlation, XLY places #5 of the 34 assets tracked against LULU. Correlation aside, the last 12 months split them widely, with XLY ahead by 44.0 points (-44.1% versus -0.1%). The rolling one-year correlation moved between 0.16 and 0.62 over the past three years, a moderate range. Note the risk asymmetry: LULU runs 2.1 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
LULU vs XLY: side by side
| LULU (Lululemon Athletica) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -44.1% | -0.1% |
| 5-year return | -72.3% | +31.8% |
| Volatility (ann.) | 41.8% | 19.7% |
| Beta vs S&P 500 | 0.98 | 1.15 |
| Max drawdown (3Y) | -79.4% | -26.0% |
| Market cap | $13.1B | – |
| P/E (trailing) | 9.4 | – |
| Dividend yield | 0.00% | 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 | LULU | XLY |
|---|---|---|
| 2022 | -18.2% | -36.3% |
| 2023 | +59.6% | +39.6% |
| 2024 | -25.2% | +26.5% |
| 2025 | -45.7% | +7.4% |
| 2026 | -44.7% | -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 LULU at a 0.3% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are LULU and XLY good diversifiers for each other?
Reasonably. At 0.45, LULU and XLY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between LULU and XLY?
Using weekly returns as of 2026-08-27: 0.45 over 3 years, with 0.45 over the last year and 0.54 over 5 years.
Is XLY a good diversifier for LULU?
Reasonably. At 0.45, LULU and XLY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.45 mean?
A reading of 0.45 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/lulu-vs-xly.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/lulu-vs-xly/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: LULU correlations · XLY correlations
