TJX vs XLY: Correlation
How closely do TJX Companies (TJX) and Consumer Discretionary Select Sector SPDR Fund (XLY) trade together? Their weekly returns over three years give a correlation of 0.40, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TJX and XLY?
Across a 3-year window, the weekly returns of TJX and XLY correlate at 0.40, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.21 versus 0.40 over 3 years. Stretching to 5 years gives 0.50, with an annualized covariance of 145.7 %².
Among the 35 assets we track against TJX, XLY ranks #19 by 3-year correlation. Neither side won the trailing year by much: -1.0% against -0.1%. The rolling one-year correlation moved between 0.21 and 0.61 over the past three years, a moderate range.
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.
TJX vs XLY: side by side
| TJX (TJX Companies) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -1.0% | -0.1% |
| 5-year return | +98.2% | +31.8% |
| Volatility (ann.) | 18.3% | 19.7% |
| Beta vs S&P 500 | 0.45 | 1.15 |
| Max drawdown (3Y) | -20.1% | -26.0% |
| Market cap | $148.3B | – |
| P/E (trailing) | 24.9 | – |
| Dividend yield | 1.32% | 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 | TJX | XLY |
|---|---|---|
| 2022 | +6.7% | -36.3% |
| 2023 | +19.7% | +39.6% |
| 2024 | +30.6% | +26.5% |
| 2025 | +28.7% | +7.4% |
| 2026 | -11.8% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 3.55% of XLY is TJX itself, so the fund partly moves with the stock by construction.
Are TJX and XLY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between TJX and XLY?
Using weekly returns as of 2026-08-27: 0.40 over 3 years, with 0.21 over the last year and 0.50 over 5 years.
Is XLY a good diversifier for TJX?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.40 mean?
A reading of 0.40 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: TJX correlations · XLY correlations
