PYPL vs XLF: Correlation
How closely do PayPal (PYPL) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.44, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PYPL and XLF?
Across a 3-year window, the weekly returns of PYPL and XLF correlate at 0.44, moderate. The past 12 months show a weaker link (0.16) than the 3-year average (0.44). Stretching to 5 years gives 0.47, with an annualized covariance of 266.4 %².
Among the 28 assets we track against PYPL, XLF ranks #17 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLF outperformed by 20.3 percentage points (-11.0% for PYPL against +9.3% for XLF). This link changes with the market regime, having swung between 0.16 and 0.66 on a rolling one-year basis. One caveat on sizing: PYPL is 2.3 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.
PYPL vs XLF: side by side
| PYPL (PayPal) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -11.0% | +9.3% |
| 5-year return | -78.5% | +64.2% |
| Volatility (ann.) | 37.1% | 16.2% |
| Beta vs S&P 500 | 1.15 | 0.84 |
| Max drawdown (3Y) | -57.3% | -15.5% |
| Market cap | $52.6B | – |
| P/E (trailing) | 11.7 | – |
| Dividend yield | 0.91% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | Financials | Sector ETF |
XLF is a Financial fund from State Street Investment Management: $57.9B under management, 77 holdings, a 0.08% expense ratio, a 1.42% trailing dividend yield.
Year-by-year returns
| Year | PYPL | XLF |
|---|---|---|
| 2022 | -62.2% | -10.6% |
| 2023 | -13.8% | +12.0% |
| 2024 | +39.0% | +30.6% |
| 2025 | -31.4% | +14.9% |
| 2026 | +6.0% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.66% of XLF is PYPL itself, so the fund partly moves with the stock by construction.
Are PYPL and XLF good diversifiers for each other?
Reasonably. At 0.44, PYPL and XLF keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between PYPL and XLF?
Using weekly returns as of 2026-08-27: 0.44 over 3 years, with 0.16 over the last year and 0.47 over 5 years.
Is XLF a good diversifier for PYPL?
Reasonably. At 0.44, PYPL and XLF keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.44 mean?
On the −1 to +1 scale, 0.44 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.
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Related comparisons
Hubs: PYPL correlations · XLF correlations
