VZ vs XLP: Correlation
How closely do Verizon (VZ) and Consumer Staples Select Sector SPDR Fund (XLP) trade together? Their weekly returns over three years give a correlation of 0.40, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VZ and XLP?
On 3 years of weekly data the VZ/XLP correlation comes out at 0.40, moderate. The past 12 months show a weaker link (0.22) than the 3-year average (0.40). The 5-year figure is 0.38, and annualized covariance runs at 101.1 %².
Among the 31 assets we track against VZ, XLP ranks #12 by 3-year correlation. Over the last 12 months VZ came out ahead by 11.0 percentage points (+19.3% against +8.3%). The rolling one-year correlation moved between 0.22 and 0.67 over the past three years, a moderate range. One caveat on sizing: VZ is 2.1 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 XLP: side by side
| VZ (Verizon) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +19.3% | +8.3% |
| 5-year return | +23.8% | +34.7% |
| Volatility (ann.) | 22.9% | 11.1% |
| Beta vs S&P 500 | 0.15 | 0.23 |
| Max drawdown (3Y) | -17.0% | -9.7% |
| Market cap | $205.4B | – |
| P/E (trailing) | 12.9 | – |
| Dividend yield | 5.57% | 2.58% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $14.6B |
| Sector / category | Communication Services | Sector ETF |
On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Year-by-year returns
| Year | VZ | XLP |
|---|---|---|
| 2022 | -20.0% | -0.8% |
| 2023 | +2.7% | -0.8% |
| 2024 | +13.1% | +12.2% |
| 2025 | +8.9% | +1.5% |
| 2026 | +27.5% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VZ and XLP good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between VZ and XLP?
As of 2026-08-27, the correlation of weekly returns between VZ and XLP is 0.40 over 3 years, 0.22 over 1 year and 0.38 over 5 years.
Is XLP a good diversifier for VZ?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.40 mean?
A reading of 0.40 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/vz-vs-xlp.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vz-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VZ correlations · XLP correlations
