TTD vs XLC: Correlation
Measured on weekly returns over the past three years, Trade Desk (The) (TTD) and Communication Services Select Sector SPDR Fund (XLC) carry a correlation of 0.28, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TTD and XLC?
Across a 3-year window, the weekly returns of TTD and XLC correlate at 0.28, weak. The link has loosened recently: the 1-year correlation (0.15) runs below the 3-year figure (0.28). Stretching to 5 years gives 0.41, with an annualized covariance of 274.1 %².
Among the 34 assets we track against TTD, XLC ranks #22 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLC ahead by 76.0 points (-74.5% versus +1.5%). The relationship is regime-dependent: the rolling one-year correlation swung between 0.08 and 0.66 over the past three years, so this pair behaves very differently depending on the market environment. Risk is not evenly split, since TTD carries 3.8 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.
TTD vs XLC: side by side
| TTD (Trade Desk (The)) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -74.5% | +1.5% |
| 5-year return | -83.4% | +37.5% |
| Volatility (ann.) | 60.7% | 16.0% |
| Beta vs S&P 500 | 1.23 | 0.90 |
| Max drawdown (3Y) | -90.7% | -18.0% |
| Market cap | $6.3B | – |
| P/E (trailing) | 15.4 | – |
| Dividend yield | 0.00% | 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 | TTD | XLC |
|---|---|---|
| 2022 | -51.1% | -37.6% |
| 2023 | +60.5% | +52.8% |
| 2024 | +63.3% | +34.7% |
| 2025 | -67.7% | +23.1% |
| 2026 | -64.6% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLC holds TTD at a 1.0% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are TTD and XLC good diversifiers for each other?
Reasonably. At 0.28, TTD and XLC keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between TTD and XLC?
Using weekly returns as of 2026-08-27: 0.28 over 3 years, with 0.15 over the last year and 0.41 over 5 years.
Is XLC a good diversifier for TTD?
Reasonably. At 0.28, TTD and XLC keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.28 mean?
A reading of 0.28 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/ttd-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ttd-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: TTD correlations · XLC correlations
