NFLX vs XLC: Correlation
Netflix (NFLX) and Communication Services Select Sector SPDR Fund (XLC) show a moderate relationship: their 3-year correlation of weekly returns is 0.48.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NFLX and XLC?
Over the past 3 years, NFLX and XLC moved with a correlation of 0.48, which is moderate. The link has loosened recently: the 1-year correlation (0.20) runs below the 3-year figure (0.48). Over 5 years the correlation is 0.59, and the annualized covariance of weekly returns is 268.7 %².
XLC is one of the assets that tracks NFLX most closely: it ranks #1 out of the 33 assets we track against NFLX. The last year tells two different stories: XLC led by 36.2 percentage points, -34.7% for NFLX against +1.5% for XLC. The relationship is regime-dependent: the rolling one-year correlation swung between 0.21 and 0.71 over the past three years, so this pair behaves very differently depending on the market environment. One caveat on sizing: NFLX is 2.2 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
NFLX vs XLC: side by side
| NFLX (Netflix) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -34.7% | +1.5% |
| 5-year return | +41.0% | +37.5% |
| Volatility (ann.) | 35.2% | 16.0% |
| Beta vs S&P 500 | 0.99 | 0.90 |
| Max drawdown (3Y) | -49.5% | -18.0% |
| Market cap | $332.4B | – |
| P/E (trailing) | 25.7 | – |
| Dividend yield | 0.00% | 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 | NFLX | XLC |
|---|---|---|
| 2022 | -51.1% | -37.6% |
| 2023 | +65.1% | +52.8% |
| 2024 | +83.1% | +34.7% |
| 2025 | +5.2% | +23.1% |
| 2026 | -14.8% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 4.84% of XLC is NFLX itself, so the fund partly moves with the stock by construction.
Are NFLX and XLC good diversifiers for each other?
Reasonably. At 0.48, NFLX and XLC keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between NFLX and XLC?
The NFLX/XLC correlation stands at 0.48 on a 3-year window (1 year: 0.20, 5 years: 0.59), computed from weekly returns as of 2026-08-27.
Is XLC a good diversifier for NFLX?
Reasonably. At 0.48, NFLX and XLC keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.48 mean?
A reading of 0.48 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/nflx-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/nflx-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: NFLX correlations · XLC correlations
