ORLY vs XLY: Correlation
How closely do O'Reilly Automotive (ORLY) and Consumer Discretionary Select Sector SPDR Fund (XLY) trade together? Their weekly returns over three years give a correlation of 0.16, which is weak.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ORLY and XLY?
Over the past 3 years, ORLY and XLY moved with a correlation of 0.16, which is weak. Little has changed lately, as the 1-year reading of 0.16 lands near the 3-year figure. Over 5 years the correlation is 0.31, and the annualized covariance of weekly returns is 62.9 %².
Among the 29 assets we track against ORLY, XLY ranks #16 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLY outperformed by 15.5 percentage points (-15.6% for ORLY against -0.1% for XLY). The rolling one-year correlation moved between -0.01 and 0.28 over the past three years, a moderate range.
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.
ORLY vs XLY: side by side
| ORLY (O'Reilly Automotive) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -15.6% | -0.1% |
| 5-year return | +120.8% | +31.8% |
| Volatility (ann.) | 19.8% | 19.7% |
| Beta vs S&P 500 | 0.20 | 1.15 |
| Max drawdown (3Y) | -23.3% | -26.0% |
| Market cap | $71.1B | – |
| P/E (trailing) | 28.4 | – |
| 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 | ORLY | XLY |
|---|---|---|
| 2022 | +19.5% | -36.3% |
| 2023 | +12.6% | +39.6% |
| 2024 | +24.8% | +26.5% |
| 2025 | +15.4% | +7.4% |
| 2026 | -3.7% | -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 ORLY at a 1.85% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are ORLY and XLY good diversifiers for each other?
By historical standards, yes. A correlation of 0.16 means the two rarely move for the same reasons.
FAQ
What is the correlation between ORLY and XLY?
Using weekly returns as of 2026-08-27: 0.16 over 3 years, with 0.16 over the last year and 0.31 over 5 years.
Is XLY a good diversifier for ORLY?
By historical standards, yes. A correlation of 0.16 means the two rarely move for the same reasons.
What does a correlation of 0.16 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.
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Related comparisons
Hubs: ORLY correlations · XLY correlations
