SPY vs XYL: Correlation
Measured on weekly returns over the past three years, SPDR S&P 500 ETF Trust (SPY) and Xylem Inc. (XYL) carry a correlation of 0.58, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and XYL?
Across a 3-year window, the weekly returns of SPY and XYL correlate at 0.58, moderate. The link has loosened recently: the 1-year correlation (0.28) runs below the 3-year figure (0.58). Stretching to 5 years gives 0.63, with an annualized covariance of 201.0 %².
Among the 4755 assets we track against SPY, XYL ranks #216 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months SPY outperformed by 41.7 percentage points (+20.6% for SPY against -21.1% for XYL). This link changes with the market regime, having swung between 0.15 and 0.78 on a rolling one-year basis. Risk is not evenly split, since XYL carries 1.6 times the volatility of the other side.
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.
SPY vs XYL: side by side
| SPY (SPDR S&P 500 ETF Trust) | XYL (Xylem Inc.) | |
|---|---|---|
| 1-year return | +20.6% | -21.1% |
| 5-year return | +82.4% | -12.5% |
| Volatility (ann.) | 14.5% | 23.9% |
| Beta vs S&P 500 | 1.00 | 0.96 |
| Max drawdown (3Y) | -18.8% | -30.0% |
| Market cap | – | $26.3B |
| P/E (trailing) | – | 26.8 |
| Dividend yield | 1.01% | 1.47% |
| Expense ratio | 0.09% | – |
| Assets under management | $795.3B | – |
| Sector / category | ETF · US Large Cap | Industrials |
SPY is a Large Blend fund from State Street Investment Management: $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% trailing dividend yield.
Year-by-year returns
| Year | SPY | XYL |
|---|---|---|
| 2022 | -18.2% | -6.6% |
| 2023 | +26.2% | +4.8% |
| 2024 | +24.9% | +2.6% |
| 2025 | +17.7% | +18.8% |
| 2026 | +13.7% | -16.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and XYL good diversifiers for each other?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SPY and XYL?
The SPY/XYL correlation stands at 0.58 on a 3-year window (1 year: 0.28, 5 years: 0.63), computed from weekly returns as of 2026-08-27.
Is XYL a good diversifier for SPY?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.58 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.
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Related comparisons
Hubs: SPY correlations · XYL correlations
