REAL vs XLY: Correlation
Measured on weekly returns over the past three years, The RealReal, Inc. (REAL) and Consumer Discretionary Select Sector SPDR Fund (XLY) carry a correlation of 0.44, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are REAL and XLY?
Across a 3-year window, the weekly returns of REAL and XLY correlate at 0.44, moderate. Recent behaviour matches the longer record: 0.51 over 1 year against 0.44 over 3. Stretching to 5 years gives 0.52, with an annualized covariance of 764.4 %².
Within REAL's tracked universe of 11 assets, XLY comes in at #4 by 3-year correlation. The last year tells two different stories: REAL led by 43.6 percentage points, +43.5% for REAL against -0.1% for XLY. Note the risk asymmetry: REAL runs 4.5 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
REAL vs XLY: side by side
| REAL (The RealReal, Inc.) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +43.5% | -0.1% |
| 5-year return | -17.2% | +31.8% |
| Volatility (ann.) | 88.9% | 19.7% |
| Beta vs S&P 500 | 2.33 | 1.15 |
| Max drawdown (3Y) | -57.2% | -26.0% |
| Market cap | $1.3B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 0.78% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $22.5B |
| Sector / category | US Listed | 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 | REAL | XLY |
|---|---|---|
| 2022 | -89.2% | -36.3% |
| 2023 | +60.8% | +39.6% |
| 2024 | +443.8% | +26.5% |
| 2025 | +44.4% | +7.4% |
| 2026 | -30.6% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are REAL and XLY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.44 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between REAL and XLY?
Using weekly returns as of 2026-08-27: 0.44 over 3 years, with 0.51 over the last year and 0.52 over 5 years.
Is XLY a good diversifier for REAL?
Yes, to a useful degree: a correlation of 0.44 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.44 mean?
A reading of 0.44 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/real-vs-xly.json
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Related comparisons
Hubs: REAL correlations · XLY correlations
