PM vs XLP: Correlation
Philip Morris International (PM) and Consumer Staples Select Sector SPDR Fund (XLP) show a moderate relationship: their 3-year correlation of weekly returns is 0.49.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PM and XLP?
On 3 years of weekly data the PM/XLP correlation comes out at 0.49, moderate. The past 12 months show a tighter link (0.60) than the 3-year average (0.49). The 5-year figure is 0.57, and annualized covariance runs at 126.9 %².
In PM's tracked universe of 47 assets, XLP sits right near the top at #3. Over the last 12 months PM came out ahead by 11.9 percentage points (+20.2% against +8.3%). Across three years, the rolling one-year figure varied moderately, from 0.24 to 0.67. Risk is not evenly split, since PM carries 2.1 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.
PM vs XLP: side by side
| PM (Philip Morris International) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.2% | +8.3% |
| 5-year return | +133.5% | +34.7% |
| Volatility (ann.) | 23.1% | 11.1% |
| Beta vs S&P 500 | -0.01 | 0.23 |
| Max drawdown (3Y) | -20.6% | -9.7% |
| Market cap | $296.9B | – |
| P/E (trailing) | 26.7 | – |
| Dividend yield | 3.03% | 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 | PM | XLP |
|---|---|---|
| 2022 | +12.3% | -0.8% |
| 2023 | -1.9% | -0.8% |
| 2024 | +34.3% | +12.2% |
| 2025 | +38.0% | +1.5% |
| 2026 | +20.8% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLP holds PM at a 6.36% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are PM and XLP good diversifiers for each other?
A fair diversifier. At 0.49, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between PM and XLP?
As of 2026-08-27, the correlation of weekly returns between PM and XLP is 0.49 over 3 years, 0.60 over 1 year and 0.57 over 5 years.
Is XLP a good diversifier for PM?
A fair diversifier. At 0.49, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.49 mean?
On the −1 to +1 scale, 0.49 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/pm-vs-xlp.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/pm-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: PM correlations · XLP correlations
