PHM vs XLY: Correlation
Measured on weekly returns over the past three years, PulteGroup (PHM) and Consumer Discretionary Select Sector SPDR Fund (XLY) carry a correlation of 0.40, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PHM and XLY?
Over the past 3 years, PHM and XLY moved with a correlation of 0.40, which is moderate. Recent behaviour matches the longer record: 0.34 over 1 year against 0.40 over 3. Over 5 years the correlation is 0.47, and the annualized covariance of weekly returns is 256.4 %².
By 3-year correlation, XLY places #34 of the 47 assets tracked against PHM. Twelve-month performance is nearly a tie, at -2.5% for PHM and -0.1% for XLY. The relationship is regime-dependent: the rolling one-year correlation swung between 0.23 and 0.73 over the past three years, so this pair behaves very differently depending on the market environment. Risk is not evenly split, since PHM carries 1.6 times the volatility of the other side.
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.
PHM vs XLY: side by side
| PHM (PulteGroup) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -2.5% | -0.1% |
| 5-year return | +145.5% | +31.8% |
| Volatility (ann.) | 32.2% | 19.7% |
| Beta vs S&P 500 | 0.82 | 1.15 |
| Max drawdown (3Y) | -38.0% | -26.0% |
| Market cap | – | – |
| P/E (trailing) | 13.3 | – |
| Dividend yield | 0.77% | 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 | PHM | XLY |
|---|---|---|
| 2022 | -19.2% | -36.3% |
| 2023 | +128.8% | +39.6% |
| 2024 | +6.2% | +26.5% |
| 2025 | +8.5% | +7.4% |
| 2026 | +8.6% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
PHM represents 0.62% of XLY's portfolio, so part of any move in XLY is PHM itself, and the correlation between them is partly mechanical.
Are PHM and XLY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between PHM and XLY?
Using weekly returns as of 2026-08-27: 0.40 over 3 years, with 0.34 over the last year and 0.47 over 5 years.
Is XLY a good diversifier for PHM?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.40 mean?
A reading of 0.40 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/phm-vs-xly.json
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Related comparisons
Hubs: PHM correlations · XLY correlations
