NCLH vs XLY: Correlation
Measured on weekly returns over the past three years, Norwegian Cruise Line Holdings (NCLH) and Consumer Discretionary Select Sector SPDR Fund (XLY) carry a correlation of 0.49, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NCLH and XLY?
On 3 years of weekly data the NCLH/XLY correlation comes out at 0.49, moderate. The past 12 months show a weaker link (0.35) than the 3-year average (0.49). The 5-year figure is 0.55, and annualized covariance runs at 476.5 %².
Within NCLH's tracked universe of 35 assets, XLY comes in at #16 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLY ahead by 33.0 points (-33.1% versus -0.1%). The rolling one-year correlation moved between 0.36 and 0.66 over the past three years, a moderate range. Note the risk asymmetry: NCLH runs 2.5 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.
NCLH vs XLY: side by side
| NCLH (Norwegian Cruise Line Holdings) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -33.1% | -0.1% |
| 5-year return | -34.4% | +31.8% |
| Volatility (ann.) | 49.9% | 19.7% |
| Beta vs S&P 500 | 1.52 | 1.15 |
| Max drawdown (3Y) | -49.1% | -26.0% |
| Market cap | $7.6B | – |
| P/E (trailing) | 10.1 | – |
| Dividend yield | 0.00% | 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 | NCLH | XLY |
|---|---|---|
| 2022 | -41.0% | -36.3% |
| 2023 | +63.7% | +39.6% |
| 2024 | +28.4% | +26.5% |
| 2025 | -13.3% | +7.4% |
| 2026 | -25.4% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLY holds NCLH at a 0.2% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are NCLH and XLY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.49 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between NCLH and XLY?
Using weekly returns as of 2026-08-27: 0.49 over 3 years, with 0.35 over the last year and 0.55 over 5 years.
Is XLY a good diversifier for NCLH?
Yes, to a useful degree: a correlation of 0.49 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.49 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: NCLH correlations · XLY correlations
