SBUX vs XLY: Correlation
Measured on weekly returns over the past three years, Starbucks (SBUX) and Consumer Discretionary Select Sector SPDR Fund (XLY) carry a correlation of 0.40, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SBUX and XLY?
Across a 3-year window, the weekly returns of SBUX and XLY correlate at 0.40, moderate. The relationship has been stable: the 1-year correlation (0.32) sits close to the 3-year figure. Stretching to 5 years gives 0.47, with an annualized covariance of 271.6 %².
Within SBUX's tracked universe of 38 assets, XLY comes in at #19 by 3-year correlation. The last year tells two different stories: SBUX led by 25.6 percentage points, +25.5% for SBUX against -0.1% for XLY. Across three years, the rolling one-year figure varied moderately, from 0.24 to 0.58. Note the risk asymmetry: SBUX runs 1.7 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.
SBUX vs XLY: side by side
| SBUX (Starbucks) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.5% | -0.1% |
| 5-year return | +4.5% | +31.8% |
| Volatility (ann.) | 34.2% | 19.7% |
| Beta vs S&P 500 | 1.10 | 1.15 |
| Max drawdown (3Y) | -32.0% | -26.0% |
| Market cap | $122.3B | – |
| P/E (trailing) | 62.7 | – |
| Dividend yield | 2.29% | 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 | SBUX | XLY |
|---|---|---|
| 2022 | -13.2% | -36.3% |
| 2023 | -1.2% | +39.6% |
| 2024 | -2.5% | +26.5% |
| 2025 | -5.3% | +7.4% |
| 2026 | +29.7% | -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 SBUX at a 3.08% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are SBUX and XLY good diversifiers for each other?
Reasonably. At 0.40, SBUX and XLY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between SBUX and XLY?
The SBUX/XLY correlation stands at 0.40 on a 3-year window (1 year: 0.32, 5 years: 0.47), computed from weekly returns as of 2026-08-27.
Is XLY a good diversifier for SBUX?
Reasonably. At 0.40, SBUX and XLY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.40 mean?
On the −1 to +1 scale, 0.40 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/sbux-vs-xly.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/sbux-vs-xly/)
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Hubs: SBUX correlations · XLY correlations
