RDDT vs XLC: Correlation
How closely do Reddit (RDDT) and Communication Services Select Sector SPDR Fund (XLC) trade together? Their weekly returns over three years give a correlation of 0.54, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RDDT and XLC?
Over the past 3 years, RDDT and XLC moved with a correlation of 0.54, which is moderate. The relationship has been stable: the 1-year correlation (0.53) sits close to the 3-year figure. Over 5 years the correlation is n/a, and the annualized covariance of weekly returns is 646.2 %².
In RDDT's tracked universe of 40 assets, XLC sits right near the top at #3. Correlation aside, the last 12 months split them widely, with XLC ahead by 28.6 points (-27.1% versus +1.5%). The rolling one-year correlation stayed in a tight band between 0.46 and 0.61 over the past three years, which points to a structural rather than episodic relationship. One caveat on sizing: RDDT is 4.7 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.
RDDT vs XLC: side by side
| RDDT (Reddit) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -27.1% | +1.5% |
| 5-year return | n/a | +37.5% |
| Volatility (ann.) | 75.2% | 16.0% |
| Beta vs S&P 500 | 2.59 | 0.90 |
| Max drawdown (3Y) | -61.4% | -18.0% |
| Market cap | $29.6B | – |
| P/E (trailing) | 36.1 | – |
| Dividend yield | 0.00% | 1.32% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $21.7B |
| Sector / category | Communication Services | Sector ETF |
On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Year-by-year returns
| Year | RDDT | XLC |
|---|---|---|
| 2022 | – | -37.6% |
| 2023 | – | +52.8% |
| 2024 | – | +34.7% |
| 2025 | +40.6% | +23.1% |
| 2026 | -33.0% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.32% of XLC is RDDT itself, so the fund partly moves with the stock by construction.
Are RDDT and XLC good diversifiers for each other?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between RDDT and XLC?
The RDDT/XLC correlation stands at 0.54 on a 3-year window (1 year: 0.53, 5 years: n/a), computed from weekly returns as of 2026-08-27.
Is XLC a good diversifier for RDDT?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.54 mean?
A reading of 0.54 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/rddt-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/rddt-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: RDDT correlations · XLC correlations
