TSLA vs XLY: Correlation
How closely do Tesla, Inc. (TSLA) and Consumer Discretionary Select Sector SPDR Fund (XLY) trade together? Their weekly returns over three years give a correlation of 0.72, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TSLA and XLY?
Across a 3-year window, the weekly returns of TSLA and XLY correlate at 0.72, strong. Little has changed lately, as the 1-year reading of 0.69 lands near the 3-year figure. Stretching to 5 years gives 0.75, with an annualized covariance of 761.3 %².
Few assets follow TSLA as closely as XLY, which ranks #1 of 31 tracked partners. Twelve-month performance is nearly a tie, at +1.5% for TSLA and -0.1% for XLY. Stability stands out here, with the rolling one-year correlation confined to 0.60 through 0.77. Note the risk asymmetry: TSLA runs 2.7 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
TSLA vs XLY: side by side
| TSLA (Tesla, Inc.) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +1.5% | -0.1% |
| 5-year return | +45.6% | +31.8% |
| Volatility (ann.) | 53.9% | 19.7% |
| Beta vs S&P 500 | 1.87 | 1.15 |
| Max drawdown (3Y) | -53.8% | -26.0% |
| Market cap | $1,401.3B | – |
| P/E (trailing) | 322.6 | – |
| Dividend yield | 0.00% | 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 | TSLA | XLY |
|---|---|---|
| 2022 | -65.0% | -36.3% |
| 2023 | +101.7% | +39.6% |
| 2024 | +62.5% | +26.5% |
| 2025 | +11.4% | +7.4% |
| 2026 | -21.1% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 16.18% of XLY is TSLA itself, so the fund partly moves with the stock by construction.
Are TSLA and XLY good diversifiers for each other?
Only partially. A correlation of 0.72 means TSLA and XLY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between TSLA and XLY?
Using weekly returns as of 2026-08-27: 0.72 over 3 years, with 0.69 over the last year and 0.75 over 5 years.
Is XLY a good diversifier for TSLA?
Only partially. A correlation of 0.72 means TSLA and XLY share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.72 mean?
A reading of 0.72 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/tsla-vs-xly.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/tsla-vs-xly/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: TSLA correlations · XLY correlations
