PG vs XLP: Correlation
How closely do Procter & Gamble (PG) and Consumer Staples Select Sector SPDR Fund (XLP) trade together? Their weekly returns over three years give a correlation of 0.67, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PG and XLP?
On 3 years of weekly data the PG/XLP correlation comes out at 0.67, strong. Little has changed lately, as the 1-year reading of 0.62 lands near the 3-year figure. The 5-year figure is 0.77, and annualized covariance runs at 114.5 %².
In PG's tracked universe of 30 assets, XLP sits right near the top at #2. Over the last 12 months XLP came out ahead by 14.4 percentage points (-6.1% against +8.3%). Stability stands out here, with the rolling one-year correlation confined to 0.61 through 0.85.
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.
PG vs XLP: side by side
| PG (Procter & Gamble) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -6.1% | +8.3% |
| 5-year return | +13.9% | +34.7% |
| Volatility (ann.) | 15.3% | 11.1% |
| Beta vs S&P 500 | 0.19 | 0.23 |
| Max drawdown (3Y) | -21.2% | -9.7% |
| Market cap | $332.7B | – |
| P/E (trailing) | 21.9 | – |
| Dividend yield | 2.94% | 2.58% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $14.6B |
| Sector / category | Consumer Staples | 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 | PG | XLP |
|---|---|---|
| 2022 | -5.0% | -0.8% |
| 2023 | -0.9% | -0.8% |
| 2024 | +17.3% | +12.2% |
| 2025 | -12.3% | +1.5% |
| 2026 | +2.1% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
PG represents 7.1% of XLP's portfolio, so part of any move in XLP is PG itself, and the correlation between them is partly mechanical.
Are PG and XLP good diversifiers for each other?
To a limited degree. At 0.67 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between PG and XLP?
The PG/XLP correlation stands at 0.67 on a 3-year window (1 year: 0.62, 5 years: 0.77), computed from weekly returns as of 2026-08-27.
Is XLP a good diversifier for PG?
To a limited degree. At 0.67 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.67 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
$ curl https://www.pairbook.io/api/v1/pairs/pg-vs-xlp.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/pg-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: PG correlations · XLP correlations
