MKC vs XLP: Correlation
Measured on weekly returns over the past three years, McCormick & Company (MKC) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of 0.56, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MKC and XLP?
Across a 3-year window, the weekly returns of MKC and XLP correlate at 0.56, moderate. Little has changed lately, as the 1-year reading of 0.60 lands near the 3-year figure. Stretching to 5 years gives 0.60, with an annualized covariance of 164.5 %².
Few assets follow MKC as closely as XLP, which ranks #1 of 34 tracked partners. The last year tells two different stories: XLP led by 28.6 percentage points, -20.3% for MKC against +8.3% for XLP. Across three years, the rolling one-year figure varied moderately, from 0.36 to 0.68. Risk is not evenly split, since MKC carries 2.4 times the volatility of the other side.
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.
MKC vs XLP: side by side
| MKC (McCormick & Company) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -20.3% | +8.3% |
| 5-year return | -28.5% | +34.7% |
| Volatility (ann.) | 26.5% | 11.1% |
| Beta vs S&P 500 | 0.24 | 0.23 |
| Max drawdown (3Y) | -44.3% | -9.7% |
| Market cap | $14.7B | – |
| P/E (trailing) | 9.2 | – |
| Dividend yield | 3.38% | 2.58% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $14.6B |
| Sector / category | Consumer Staples | 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 | MKC | XLP |
|---|---|---|
| 2022 | -12.7% | -0.8% |
| 2023 | -15.7% | -0.8% |
| 2024 | +14.0% | +12.2% |
| 2025 | -8.3% | +1.5% |
| 2026 | -18.5% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.88% of XLP is MKC itself, so the fund partly moves with the stock by construction.
Are MKC and XLP good diversifiers for each other?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between MKC and XLP?
As of 2026-08-27, the correlation of weekly returns between MKC and XLP is 0.56 over 3 years, 0.60 over 1 year and 0.60 over 5 years.
Is XLP a good diversifier for MKC?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.56 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: MKC correlations · XLP correlations
