TGT vs XLP: Correlation
Measured on weekly returns over the past three years, Target Corporation (TGT) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of 0.33, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TGT and XLP?
Across a 3-year window, the weekly returns of TGT and XLP correlate at 0.33, moderate. Recent behaviour matches the longer record: 0.41 over 1 year against 0.33 over 3. Stretching to 5 years gives 0.49, with an annualized covariance of 117.1 %².
Among the 35 assets we track against TGT, XLP ranks #18 by 3-year correlation. Correlation aside, the last 12 months split them widely, with TGT ahead by 67.9 points (+76.2% versus +8.3%). The relationship is regime-dependent: the rolling one-year correlation swung between 0.06 and 0.60 over the past three years, so this pair behaves very differently depending on the market environment. Risk is not evenly split, since TGT carries 2.9 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.
TGT vs XLP: side by side
| TGT (Target Corporation) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +76.2% | +8.3% |
| 5-year return | -22.2% | +34.7% |
| Volatility (ann.) | 32.0% | 11.1% |
| Beta vs S&P 500 | 0.62 | 0.23 |
| Max drawdown (3Y) | -49.8% | -9.7% |
| Market cap | $75.4B | – |
| P/E (trailing) | 17.2 | – |
| Dividend yield | 2.78% | 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 | TGT | XLP |
|---|---|---|
| 2022 | -34.2% | -0.8% |
| 2023 | -1.4% | -0.8% |
| 2024 | -2.3% | +12.2% |
| 2025 | -24.5% | +1.5% |
| 2026 | +74.4% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLP holds TGT at a 4.67% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are TGT and XLP good diversifiers for each other?
Reasonably. At 0.33, TGT and XLP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between TGT and XLP?
As of 2026-08-27, the correlation of weekly returns between TGT and XLP is 0.33 over 3 years, 0.41 over 1 year and 0.49 over 5 years.
Is XLP a good diversifier for TGT?
Reasonably. At 0.33, TGT and XLP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.33 mean?
On the −1 to +1 scale, 0.33 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: TGT correlations · XLP correlations
