TR vs XLP: Correlation
Measured on weekly returns over the past three years, Tootsie Roll Industries, Inc. (TR) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of 0.38, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TR and XLP?
On 3 years of weekly data the TR/XLP correlation comes out at 0.38, moderate. The relationship has been stable: the 1-year correlation (0.48) sits close to the 3-year figure. The 5-year figure is 0.44, and annualized covariance runs at 106.3 %².
By 3-year correlation, XLP places #5 of the 13 assets tracked against TR. Their 12-month results are close: +4.1% for TR against +8.3% for XLP. One caveat on sizing: TR is 2.3 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
TR vs XLP: side by side
| TR (Tootsie Roll Industries, Inc.) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +4.1% | +8.3% |
| 5-year return | +57.7% | +34.7% |
| Volatility (ann.) | 25.1% | 11.1% |
| Beta vs S&P 500 | 0.05 | 0.23 |
| Max drawdown (3Y) | -20.0% | -9.7% |
| Market cap | $3.1B | – |
| P/E (trailing) | 32.2 | – |
| Dividend yield | 0.84% | 2.58% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $14.6B |
| Sector / category | US Listed | 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 | TR | XLP |
|---|---|---|
| 2022 | +22.3% | -0.8% |
| 2023 | -18.8% | -0.8% |
| 2024 | +1.4% | +12.2% |
| 2025 | +17.9% | +1.5% |
| 2026 | +15.5% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TR and XLP good diversifiers for each other?
Reasonably. At 0.38, TR and XLP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between TR and XLP?
As of 2026-08-27, the correlation of weekly returns between TR and XLP is 0.38 over 3 years, 0.48 over 1 year and 0.44 over 5 years.
Is XLP a good diversifier for TR?
Reasonably. At 0.38, TR and XLP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.38 mean?
On the −1 to +1 scale, 0.38 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/tr-vs-xlp.json
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[](https://www.pairbook.io/pair/tr-vs-xlp/)
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Related comparisons
Hubs: TR correlations · XLP correlations
