T vs XLC: Correlation
How closely do AT&T (T) and Communication Services Select Sector SPDR Fund (XLC) trade together? Their weekly returns over three years give a correlation of 0.17, which is weak.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are T and XLC?
Across a 3-year window, the weekly returns of T and XLC correlate at 0.17, weak. The past 12 months show a weaker link (-0.07) than the 3-year average (0.17). Stretching to 5 years gives 0.24, with an annualized covariance of 61.0 %².
Within T's tracked universe of 32 assets, XLC comes in at #19 by 3-year correlation. On 12-month performance XLC holds a 9.9-point edge, -8.4% against +1.5%. This link changes with the market regime, having swung between -0.06 and 0.53 on a rolling one-year basis.
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.
T vs XLC: side by side
| T (AT&T) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -8.4% | +1.5% |
| 5-year return | +67.2% | +37.5% |
| Volatility (ann.) | 22.4% | 16.0% |
| Beta vs S&P 500 | 0.05 | 0.90 |
| Max drawdown (3Y) | -28.9% | -18.0% |
| Market cap | $174.3B | – |
| P/E (trailing) | 8.4 | – |
| Dividend yield | 4.29% | 1.32% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $21.7B |
| Sector / category | Communication Services | Sector ETF |
On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Year-by-year returns
| Year | T | XLC |
|---|---|---|
| 2022 | +6.5% | -37.6% |
| 2023 | -2.7% | +52.8% |
| 2024 | +44.1% | +34.7% |
| 2025 | +14.0% | +23.1% |
| 2026 | +6.1% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLC holds T at a 5.2% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are T and XLC good diversifiers for each other?
By historical standards, yes. A correlation of 0.17 means the two rarely move for the same reasons.
FAQ
What is the correlation between T and XLC?
The T/XLC correlation stands at 0.17 on a 3-year window (1 year: -0.07, 5 years: 0.24), computed from weekly returns as of 2026-08-27.
Is XLC a good diversifier for T?
By historical standards, yes. A correlation of 0.17 means the two rarely move for the same reasons.
What does a correlation of 0.17 mean?
A reading of 0.17 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/t-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/t-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: T correlations · XLC correlations
