ROST vs XLY: Correlation
Measured on weekly returns over the past three years, Ross Stores (ROST) 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 ROST and XLY?
Across a 3-year window, the weekly returns of ROST and XLY correlate at 0.44, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.33 versus 0.44 over 3 years. Stretching to 5 years gives 0.54, with an annualized covariance of 210.1 %².
Among the 32 assets we track against ROST, XLY ranks #9 by 3-year correlation. The last year tells two different stories: ROST led by 54.4 percentage points, +54.3% for ROST against -0.1% for XLY. Across three years, the rolling one-year figure varied moderately, from 0.30 to 0.56.
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.
ROST vs XLY: side by side
| ROST (Ross Stores) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +54.3% | -0.1% |
| 5-year return | +105.0% | +31.8% |
| Volatility (ann.) | 24.0% | 19.7% |
| Beta vs S&P 500 | 0.66 | 1.15 |
| Max drawdown (3Y) | -21.1% | -26.0% |
| Market cap | $73.7B | – |
| P/E (trailing) | 27.8 | – |
| Dividend yield | 0.72% | 0.78% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $22.5B |
| Sector / category | Consumer Discretionary | 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 | ROST | XLY |
|---|---|---|
| 2022 | +2.9% | -36.3% |
| 2023 | +20.6% | +39.6% |
| 2024 | +10.4% | +26.5% |
| 2025 | +20.4% | +7.4% |
| 2026 | +28.1% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLY holds ROST at a 1.9% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are ROST 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 ROST and XLY?
The ROST/XLY correlation stands at 0.44 on a 3-year window (1 year: 0.33, 5 years: 0.54), computed from weekly returns as of 2026-08-27.
Is XLY a good diversifier for ROST?
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?
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: ROST correlations · XLY correlations
