VZ vs XLC: Correlation
Measured on weekly returns over the past three years, Verizon (VZ) and Communication Services Select Sector SPDR Fund (XLC) carry a correlation of 0.19, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VZ and XLC?
On 3 years of weekly data the VZ/XLC correlation comes out at 0.19, weak. Lately the two have drifted apart, with the 1-year correlation at 0.01 versus 0.19 over 3 years. The 5-year figure is 0.24, and annualized covariance runs at 68.1 %².
By 3-year correlation, XLC places #19 of the 31 assets tracked against VZ. Their recent paths diverged sharply: over the last 12 months VZ outperformed by 17.8 percentage points (+19.3% for VZ against +1.5% for XLC). The rolling one-year correlation moved between 0.03 and 0.43 over the past three years, a moderate range.
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.
VZ vs XLC: side by side
| VZ (Verizon) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +19.3% | +1.5% |
| 5-year return | +23.8% | +37.5% |
| Volatility (ann.) | 22.9% | 16.0% |
| Beta vs S&P 500 | 0.15 | 0.90 |
| Max drawdown (3Y) | -17.0% | -18.0% |
| Market cap | $205.4B | – |
| P/E (trailing) | 12.9 | – |
| Dividend yield | 5.57% | 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 | VZ | XLC |
|---|---|---|
| 2022 | -20.0% | -37.6% |
| 2023 | +2.7% | +52.8% |
| 2024 | +13.1% | +34.7% |
| 2025 | +8.9% | +23.1% |
| 2026 | +27.5% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
VZ represents 4.99% of XLC's portfolio, so part of any move in XLC is VZ itself, and the correlation between them is partly mechanical.
Are VZ and XLC good diversifiers for each other?
By historical standards, yes. A correlation of 0.19 means the two rarely move for the same reasons.
FAQ
What is the correlation between VZ and XLC?
As of 2026-08-27, the correlation of weekly returns between VZ and XLC is 0.19 over 3 years, 0.01 over 1 year and 0.24 over 5 years.
Is XLC a good diversifier for VZ?
By historical standards, yes. A correlation of 0.19 means the two rarely move for the same reasons.
What does a correlation of 0.19 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vz-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vz-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VZ correlations · XLC correlations
