TSCO vs XLY: Correlation
Measured on weekly returns over the past three years, Tractor Supply (TSCO) and Consumer Discretionary Select Sector SPDR Fund (XLY) 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 TSCO and XLY?
Over the past 3 years, TSCO and XLY moved with a correlation of 0.33, which is moderate. Little has changed lately, as the 1-year reading of 0.24 lands near the 3-year figure. Over 5 years the correlation is 0.38, and the annualized covariance of weekly returns is 187.5 %².
Among the 30 assets we track against TSCO, XLY ranks #19 by 3-year correlation. The last year tells two different stories: XLY led by 42.9 percentage points, -43.0% for TSCO against -0.1% for XLY. Stability stands out here, with the rolling one-year correlation confined to 0.27 through 0.50.
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.
TSCO vs XLY: side by side
| TSCO (Tractor Supply) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -43.0% | -0.1% |
| 5-year return | -1.7% | +31.8% |
| Volatility (ann.) | 28.5% | 19.7% |
| Beta vs S&P 500 | 0.67 | 1.15 |
| Max drawdown (3Y) | -52.7% | -26.0% |
| Market cap | $18.1B | – |
| P/E (trailing) | 18.3 | – |
| Dividend yield | 2.68% | 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 | TSCO | XLY |
|---|---|---|
| 2022 | -4.0% | -36.3% |
| 2023 | -2.6% | +39.6% |
| 2024 | +25.4% | +26.5% |
| 2025 | -4.2% | +7.4% |
| 2026 | -29.3% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.46% of XLY is TSCO itself, so the fund partly moves with the stock by construction.
Are TSCO and XLY 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 TSCO and XLY?
Using weekly returns as of 2026-08-27: 0.33 over 3 years, with 0.24 over the last year and 0.38 over 5 years.
Is XLY a good diversifier for TSCO?
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?
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: TSCO correlations · XLY correlations
