TMUS vs XLP: Correlation
How closely do T-Mobile US (TMUS) and Consumer Staples Select Sector SPDR Fund (XLP) trade together? Their weekly returns over three years give a correlation of 0.35, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TMUS and XLP?
Across a 3-year window, the weekly returns of TMUS and XLP correlate at 0.35, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.20 versus 0.35 over 3 years. Stretching to 5 years gives 0.40, with an annualized covariance of 96.6 %².
Among the 31 assets we track against TMUS, XLP ranks #14 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLP ahead by 36.3 points (-28.0% versus +8.3%). The rolling one-year correlation moved between 0.16 and 0.59 over the past three years, a moderate range. Risk is not evenly split, since TMUS carries 2.2 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 XLP: side by side
| TMUS (T-Mobile US) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -28.0% | +8.3% |
| 5-year return | +34.8% | +34.7% |
| Volatility (ann.) | 24.6% | 11.1% |
| Beta vs S&P 500 | 0.36 | 0.23 |
| Max drawdown (3Y) | -37.1% | -9.7% |
| Market cap | $190.7B | – |
| P/E (trailing) | 18.8 | – |
| Dividend yield | 2.27% | 2.58% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $14.6B |
| Sector / category | Communication Services | 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 | TMUS | XLP |
|---|---|---|
| 2022 | +20.7% | -0.8% |
| 2023 | +15.0% | -0.8% |
| 2024 | +39.7% | +12.2% |
| 2025 | -6.6% | +1.5% |
| 2026 | -11.6% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TMUS and XLP good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.35 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between TMUS and XLP?
The TMUS/XLP correlation stands at 0.35 on a 3-year window (1 year: 0.20, 5 years: 0.40), computed from weekly returns as of 2026-08-27.
Is XLP a good diversifier for TMUS?
Yes, to a useful degree: a correlation of 0.35 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.35 mean?
A reading of 0.35 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: TMUS correlations · XLP correlations
