URBN vs XLY: Correlation
Measured on weekly returns over the past three years, Urban Outfitters, Inc. (URBN) and Consumer Discretionary Select Sector SPDR Fund (XLY) carry a correlation of 0.43, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are URBN and XLY?
Over the past 3 years, URBN and XLY moved with a correlation of 0.43, which is moderate. The link has tightened recently: the 1-year correlation (0.53) runs above the 3-year figure (0.43). Over 5 years the correlation is 0.49, and the annualized covariance of weekly returns is 357.1 %².
Within URBN's tracked universe of 12 assets, XLY comes in at #5 by 3-year correlation. Neither side won the trailing year by much: +1.0% against -0.1%. Note the risk asymmetry: URBN runs 2.1 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.
URBN vs XLY: side by side
| URBN (Urban Outfitters, Inc.) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +1.0% | -0.1% |
| 5-year return | +132.0% | +31.8% |
| Volatility (ann.) | 41.9% | 19.7% |
| Beta vs S&P 500 | 1.09 | 1.15 |
| Max drawdown (3Y) | -28.5% | -26.0% |
| Market cap | $6.7B | – |
| P/E (trailing) | 15.2 | – |
| Dividend yield | 0.00% | 0.78% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $22.5B |
| Sector / category | US Listed | 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 | URBN | XLY |
|---|---|---|
| 2022 | -18.8% | -36.3% |
| 2023 | +49.6% | +39.6% |
| 2024 | +53.8% | +26.5% |
| 2025 | +37.1% | +7.4% |
| 2026 | +4.7% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are URBN and XLY good diversifiers for each other?
A fair diversifier. At 0.43, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between URBN and XLY?
The URBN/XLY correlation stands at 0.43 on a 3-year window (1 year: 0.53, 5 years: 0.49), computed from weekly returns as of 2026-08-27.
Is XLY a good diversifier for URBN?
A fair diversifier. At 0.43, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.43 mean?
On the −1 to +1 scale, 0.43 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: URBN correlations · XLY correlations
