O vs XLP: Correlation
Realty Income (O) and Consumer Staples Select Sector SPDR Fund (XLP) show a moderate relationship: their 3-year correlation of weekly returns is 0.59.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are O and XLP?
Over the past 3 years, O and XLP moved with a correlation of 0.59, which is moderate. The relationship has been stable: the 1-year correlation (0.64) sits close to the 3-year figure. Over 5 years the correlation is 0.58, and the annualized covariance of weekly returns is 113.9 %².
Within O's tracked universe of 44 assets, XLP comes in at #20 by 3-year correlation. Neither side won the trailing year by much: +11.3% against +8.3%. The rolling one-year correlation stayed in a tight band between 0.51 and 0.66 over the past three years, which points to a structural rather than episodic relationship. One caveat on sizing: O is 1.6 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.
O vs XLP: side by side
| O (Realty Income) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +11.3% | +8.3% |
| 5-year return | +14.5% | +34.7% |
| Volatility (ann.) | 17.3% | 11.1% |
| Beta vs S&P 500 | 0.21 | 0.23 |
| Max drawdown (3Y) | -19.3% | -9.7% |
| Market cap | $58.5B | – |
| P/E (trailing) | 45.4 | – |
| Dividend yield | 5.20% | 2.58% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $14.6B |
| Sector / category | Real Estate | 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 | O | XLP |
|---|---|---|
| 2022 | -7.4% | -0.8% |
| 2023 | -4.5% | -0.8% |
| 2024 | -2.1% | +12.2% |
| 2025 | +12.2% | +1.5% |
| 2026 | +13.0% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are O and XLP good diversifiers for each other?
Somewhat, no more. With 0.59 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between O and XLP?
Using weekly returns as of 2026-08-27: 0.59 over 3 years, with 0.64 over the last year and 0.58 over 5 years.
Is XLP a good diversifier for O?
Somewhat, no more. With 0.59 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.59 mean?
On the −1 to +1 scale, 0.59 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/o-vs-xlp.json
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[](https://www.pairbook.io/pair/o-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: O correlations · XLP correlations
