STZ vs XLP: Correlation
Constellation Brands (STZ) and Consumer Staples Select Sector SPDR Fund (XLP) show a moderate relationship: their 3-year correlation of weekly returns is 0.51.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are STZ and XLP?
Across a 3-year window, the weekly returns of STZ and XLP correlate at 0.51, moderate. Recent behaviour matches the longer record: 0.43 over 1 year against 0.51 over 3. Stretching to 5 years gives 0.53, with an annualized covariance of 152.0 %².
Few assets follow STZ as closely as XLP, which ranks #2 of 31 tracked partners. Correlation aside, the last 12 months split them widely, with XLP ahead by 24.0 points (-15.7% versus +8.3%). The rolling one-year correlation moved between 0.41 and 0.70 over the past three years, a moderate range. Note the risk asymmetry: STZ runs 2.4 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.
STZ vs XLP: side by side
| STZ (Constellation Brands) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -15.7% | +8.3% |
| 5-year return | -31.9% | +34.7% |
| Volatility (ann.) | 26.6% | 11.1% |
| Beta vs S&P 500 | 0.41 | 0.23 |
| Max drawdown (3Y) | -51.3% | -9.7% |
| Market cap | $22.4B | – |
| P/E (trailing) | 12.8 | – |
| Dividend yield | 3.04% | 2.58% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $14.6B |
| Sector / category | Consumer Staples | Sector ETF |
On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Year-by-year returns
| Year | STZ | XLP |
|---|---|---|
| 2022 | -6.4% | -0.8% |
| 2023 | +5.8% | -0.8% |
| 2024 | -7.1% | +12.2% |
| 2025 | -36.0% | +1.5% |
| 2026 | -2.7% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
STZ represents 1.18% of XLP's portfolio, so part of any move in XLP is STZ itself, and the correlation between them is partly mechanical.
Are STZ and XLP good diversifiers for each other?
Only partially. A correlation of 0.51 means STZ and XLP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between STZ and XLP?
Using weekly returns as of 2026-08-27: 0.51 over 3 years, with 0.43 over the last year and 0.53 over 5 years.
Is XLP a good diversifier for STZ?
Only partially. A correlation of 0.51 means STZ and XLP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.51 mean?
A reading of 0.51 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/stz-vs-xlp.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/stz-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: STZ correlations · XLP correlations
