TMUS vs XLC: Correlation
How closely do T-Mobile US (TMUS) and Communication Services Select Sector SPDR Fund (XLC) trade together? Their weekly returns over three years give a correlation of 0.33, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TMUS and XLC?
Over the past 3 years, TMUS and XLC moved with a correlation of 0.33, which is moderate. The past 12 months show a weaker link (0.19) than the 3-year average (0.33). Over 5 years the correlation is 0.34, and the annualized covariance of weekly returns is 128.2 %².
Within TMUS's tracked universe of 31 assets, XLC comes in at #16 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLC outperformed by 29.5 percentage points (-28.0% for TMUS against +1.5% for XLC). The relationship is regime-dependent: the rolling one-year correlation swung between 0.08 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 TMUS carries 1.5 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.
TMUS vs XLC: side by side
| TMUS (T-Mobile US) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -28.0% | +1.5% |
| 5-year return | +34.8% | +37.5% |
| Volatility (ann.) | 24.6% | 16.0% |
| Beta vs S&P 500 | 0.36 | 0.90 |
| Max drawdown (3Y) | -37.1% | -18.0% |
| Market cap | $190.7B | – |
| P/E (trailing) | 18.8 | – |
| Dividend yield | 2.27% | 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 | TMUS | XLC |
|---|---|---|
| 2022 | +20.7% | -37.6% |
| 2023 | +15.0% | +52.8% |
| 2024 | +39.7% | +34.7% |
| 2025 | -6.6% | +23.1% |
| 2026 | -11.6% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
TMUS represents 4.53% of XLC's portfolio, so part of any move in XLC is TMUS itself, and the correlation between them is partly mechanical.
Are TMUS and XLC good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.33 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between TMUS and XLC?
As of 2026-08-27, the correlation of weekly returns between TMUS and XLC is 0.33 over 3 years, 0.19 over 1 year and 0.34 over 5 years.
Is XLC a good diversifier for TMUS?
Yes, to a useful degree: a correlation of 0.33 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.33 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/tmus-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/tmus-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: TMUS correlations · XLC correlations
