MCD vs XLY: Correlation
McDonald's (MCD) and Consumer Discretionary Select Sector SPDR Fund (XLY) show a weak relationship: their 3-year correlation of weekly returns is 0.29.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MCD and XLY?
On 3 years of weekly data the MCD/XLY correlation comes out at 0.29, weak. Little has changed lately, as the 1-year reading of 0.32 lands near the 3-year figure. The 5-year figure is 0.43, and annualized covariance runs at 103.2 %².
Within MCD's tracked universe of 34 assets, XLY comes in at #21 by 3-year correlation. On 12-month performance XLY holds a 14.4-point edge, -14.5% against -0.1%. On a rolling one-year basis the correlation drifted between 0.18 and 0.48, 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.
MCD vs XLY: side by side
| MCD (McDonald's) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -14.5% | -0.1% |
| 5-year return | +23.3% | +31.8% |
| Volatility (ann.) | 17.8% | 19.7% |
| Beta vs S&P 500 | 0.30 | 1.15 |
| Max drawdown (3Y) | -22.8% | -26.0% |
| Market cap | $184.0B | – |
| P/E (trailing) | 21.7 | – |
| Dividend yield | 2.75% | 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 | MCD | XLY |
|---|---|---|
| 2022 | +0.5% | -36.3% |
| 2023 | +15.1% | +39.6% |
| 2024 | +0.1% | +26.5% |
| 2025 | +7.9% | +7.4% |
| 2026 | -13.9% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
MCD represents 4.11% of XLY's portfolio, so part of any move in XLY is MCD itself, and the correlation between them is partly mechanical.
Are MCD and XLY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.29 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between MCD and XLY?
As of 2026-08-27, the correlation of weekly returns between MCD and XLY is 0.29 over 3 years, 0.32 over 1 year and 0.43 over 5 years.
Is XLY a good diversifier for MCD?
Yes, to a useful degree: a correlation of 0.29 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.29 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/mcd-vs-xly.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mcd-vs-xly/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: MCD correlations · XLY correlations
