MCD vs XLP: Correlation
McDonald's (MCD) and Consumer Staples Select Sector SPDR Fund (XLP) show a moderate relationship: their 3-year correlation of weekly returns is 0.52.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MCD and XLP?
Across a 3-year window, the weekly returns of MCD and XLP correlate at 0.52, moderate. Recent behaviour matches the longer record: 0.51 over 1 year against 0.52 over 3. Stretching to 5 years gives 0.63, with an annualized covariance of 103.7 %².
In MCD's tracked universe of 34 assets, XLP sits right near the top at #2. The last year tells two different stories: XLP led by 22.8 percentage points, -14.5% for MCD against +8.3% for XLP. On a rolling one-year basis the correlation drifted between 0.46 and 0.77, a moderate band. Note the risk asymmetry: MCD runs 1.6 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.
MCD vs XLP: side by side
| MCD (McDonald's) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -14.5% | +8.3% |
| 5-year return | +23.3% | +34.7% |
| Volatility (ann.) | 17.8% | 11.1% |
| Beta vs S&P 500 | 0.30 | 0.23 |
| Max drawdown (3Y) | -22.8% | -9.7% |
| Market cap | $184.0B | – |
| P/E (trailing) | 21.7 | – |
| Dividend yield | 2.75% | 2.58% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $14.6B |
| Sector / category | Consumer Discretionary | 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 | MCD | XLP |
|---|---|---|
| 2022 | +0.5% | -0.8% |
| 2023 | +15.1% | -0.8% |
| 2024 | +0.1% | +12.2% |
| 2025 | +7.9% | +1.5% |
| 2026 | -13.9% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MCD and XLP good diversifiers for each other?
Only partially. A correlation of 0.52 means MCD and XLP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between MCD and XLP?
The MCD/XLP correlation stands at 0.52 on a 3-year window (1 year: 0.51, 5 years: 0.63), computed from weekly returns as of 2026-08-27.
Is XLP a good diversifier for MCD?
Only partially. A correlation of 0.52 means MCD and XLP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.52 mean?
On the −1 to +1 scale, 0.52 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/mcd-vs-xlp.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mcd-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MCD correlations · XLP correlations
