OMC vs XLC: Correlation
How closely do Omnicom Group (OMC) and Communication Services Select Sector SPDR Fund (XLC) trade together? Their weekly returns over three years give a correlation of 0.39, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are OMC and XLC?
On 3 years of weekly data the OMC/XLC correlation comes out at 0.39, moderate. The relationship has been stable: the 1-year correlation (0.36) sits close to the 3-year figure. The 5-year figure is 0.42, and annualized covariance runs at 176.6 %².
Among the 36 assets we track against OMC, XLC ranks #22 by 3-year correlation. The last year tells two different stories: OMC led by 15.0 percentage points, +16.5% for OMC against +1.5% for XLC. Across three years, the rolling one-year figure varied moderately, from 0.12 to 0.58. One caveat on sizing: OMC is 1.8 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.
OMC vs XLC: side by side
| OMC (Omnicom Group) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +16.5% | +1.5% |
| 5-year return | +45.6% | +37.5% |
| Volatility (ann.) | 28.0% | 16.0% |
| Beta vs S&P 500 | 0.76 | 0.90 |
| Max drawdown (3Y) | -33.3% | -18.0% |
| Market cap | $24.1B | – |
| P/E (trailing) | 237.5 | – |
| Dividend yield | 3.53% | 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 | OMC | XLC |
|---|---|---|
| 2022 | +15.7% | -37.6% |
| 2023 | +9.6% | +52.8% |
| 2024 | +2.5% | +34.7% |
| 2025 | -2.6% | +23.1% |
| 2026 | +11.1% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLC holds OMC at a 4.52% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are OMC and XLC good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.39 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between OMC and XLC?
The OMC/XLC correlation stands at 0.39 on a 3-year window (1 year: 0.36, 5 years: 0.42), computed from weekly returns as of 2026-08-27.
Is XLC a good diversifier for OMC?
Yes, to a useful degree: a correlation of 0.39 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.39 mean?
A reading of 0.39 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/omc-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/omc-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: OMC correlations · XLC correlations
