META vs XLC: Correlation
How closely do Meta Platforms (META) and Communication Services Select Sector SPDR Fund (XLC) trade together? Their weekly returns over three years give a correlation of 0.72, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are META and XLC?
On 3 years of weekly data the META/XLC correlation comes out at 0.72, strong. The relationship has been stable: the 1-year correlation (0.72) sits close to the 3-year figure. The 5-year figure is 0.76, and annualized covariance runs at 425.5 %².
In META's tracked universe of 33 assets, XLC sits right near the top at #1. The last year tells two different stories: XLC led by 24.8 percentage points, -23.3% for META against +1.5% for XLC. Stability stands out here, with the rolling one-year correlation confined to 0.63 through 0.84. Note the risk asymmetry: META runs 2.3 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.
META vs XLC: side by side
| META (Meta Platforms) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -23.3% | +1.5% |
| 5-year return | +51.3% | +37.5% |
| Volatility (ann.) | 36.9% | 16.0% |
| Beta vs S&P 500 | 1.45 | 0.90 |
| Max drawdown (3Y) | -34.2% | -18.0% |
| Market cap | $1,454.9B | – |
| P/E (trailing) | 21.7 | – |
| Dividend yield | 0.36% | 1.32% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $21.7B |
| Sector / category | Communication Services | Sector ETF |
On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Year-by-year returns
| Year | META | XLC |
|---|---|---|
| 2022 | -64.2% | -37.6% |
| 2023 | +194.1% | +52.8% |
| 2024 | +66.0% | +34.7% |
| 2025 | +13.1% | +23.1% |
| 2026 | -13.3% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 16.73% of XLC is META itself, so the fund partly moves with the stock by construction.
Are META and XLC good diversifiers for each other?
Only partially. A correlation of 0.72 means META and XLC 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 META and XLC?
Using weekly returns as of 2026-08-27: 0.72 over 3 years, with 0.72 over the last year and 0.76 over 5 years.
Is XLC a good diversifier for META?
Only partially. A correlation of 0.72 means META and XLC share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.72 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/meta-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/meta-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: META correlations · XLC correlations
