MO vs XLP: Correlation
How closely do Altria (MO) and Consumer Staples Select Sector SPDR Fund (XLP) trade together? Their weekly returns over three years give a correlation of 0.52, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MO and XLP?
Across a 3-year window, the weekly returns of MO and XLP correlate at 0.52, moderate. Little has changed lately, as the 1-year reading of 0.56 lands near the 3-year figure. Stretching to 5 years gives 0.50, with an annualized covariance of 127.0 %².
Few assets follow MO as closely as XLP, which ranks #3 of 49 tracked partners. Their 12-month results are close: +8.8% for MO against +8.3% for XLP. On a rolling one-year basis the correlation drifted between 0.34 and 0.72, a moderate band. Risk is not evenly split, since MO carries 2.0 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.
MO vs XLP: side by side
| MO (Altria) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +8.8% | +8.3% |
| 5-year return | +100.4% | +34.7% |
| Volatility (ann.) | 21.8% | 11.1% |
| Beta vs S&P 500 | -0.07 | 0.23 |
| Max drawdown (3Y) | -16.4% | -9.7% |
| Market cap | $113.0B | – |
| P/E (trailing) | 14.6 | – |
| Dividend yield | 6.13% | 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 | MO | XLP |
|---|---|---|
| 2022 | +4.4% | -0.8% |
| 2023 | -3.7% | -0.8% |
| 2024 | +40.8% | +12.2% |
| 2025 | +18.2% | +1.5% |
| 2026 | +21.1% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 4.21% of XLP is MO itself, so the fund partly moves with the stock by construction.
Are MO and XLP good diversifiers for each other?
Only partially. A correlation of 0.52 means MO 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 MO and XLP?
Using weekly returns as of 2026-08-27: 0.52 over 3 years, with 0.56 over the last year and 0.50 over 5 years.
Is XLP a good diversifier for MO?
Only partially. A correlation of 0.52 means MO 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?
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/mo-vs-xlp.json
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[](https://www.pairbook.io/pair/mo-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MO correlations · XLP correlations
