PYPL vs XLY: Correlation
How closely do PayPal (PYPL) and Consumer Discretionary Select Sector SPDR Fund (XLY) trade together? Their weekly returns over three years give a correlation of 0.51, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PYPL and XLY?
Across a 3-year window, the weekly returns of PYPL and XLY correlate at 0.51, moderate. The past 12 months show a weaker link (0.29) than the 3-year average (0.51). Stretching to 5 years gives 0.50, with an annualized covariance of 368.4 %².
By 3-year correlation, XLY places #6 of the 28 assets tracked against PYPL. Over the last 12 months XLY came out ahead by 10.9 percentage points (-11.0% against -0.1%). On a rolling one-year basis the correlation drifted between 0.30 and 0.70, a moderate band. One caveat on sizing: PYPL is 1.9 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 XLY: side by side
| PYPL (PayPal) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -11.0% | -0.1% |
| 5-year return | -78.5% | +31.8% |
| Volatility (ann.) | 37.1% | 19.7% |
| Beta vs S&P 500 | 1.15 | 1.15 |
| Max drawdown (3Y) | -57.3% | -26.0% |
| Market cap | $52.6B | – |
| P/E (trailing) | 11.7 | – |
| Dividend yield | 0.91% | 0.78% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $22.5B |
| Sector / category | Financials | 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 | PYPL | XLY |
|---|---|---|
| 2022 | -62.2% | -36.3% |
| 2023 | -13.8% | +39.6% |
| 2024 | +39.0% | +26.5% |
| 2025 | -31.4% | +7.4% |
| 2026 | +6.0% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PYPL and XLY good diversifiers for each other?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between PYPL and XLY?
Using weekly returns as of 2026-08-27: 0.51 over 3 years, with 0.29 over the last year and 0.50 over 5 years.
Is XLY a good diversifier for PYPL?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.51 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/pypl-vs-xly.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/pypl-vs-xly/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: PYPL correlations · XLY correlations
