WBD vs XLC: Correlation
Measured on weekly returns over the past three years, Warner Bros. Discovery (WBD) and Communication Services Select Sector SPDR Fund (XLC) carry a correlation of 0.36, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are WBD and XLC?
On 3 years of weekly data the WBD/XLC correlation comes out at 0.36, moderate. Little has changed lately, as the 1-year reading of 0.27 lands near the 3-year figure. The 5-year figure is 0.42, and annualized covariance runs at 315.7 %².
By 3-year correlation, XLC places #16 of the 36 assets tracked against WBD. Their recent paths diverged sharply: over the last 12 months WBD outperformed by 136.2 percentage points (+137.7% for WBD against +1.5% for XLC). On a rolling one-year basis the correlation drifted between 0.11 and 0.58, a moderate band. Risk is not evenly split, since WBD carries 3.4 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.
WBD vs XLC: side by side
| WBD (Warner Bros. Discovery) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +137.7% | +1.5% |
| 5-year return | +3.7% | +37.5% |
| Volatility (ann.) | 54.7% | 16.0% |
| Beta vs S&P 500 | 1.19 | 0.90 |
| Max drawdown (3Y) | -48.9% | -18.0% |
| Market cap | $72.4B | – |
| P/E (trailing) | – | – |
| 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 | WBD | XLC |
|---|---|---|
| 2022 | -59.7% | -37.6% |
| 2023 | +20.0% | +52.8% |
| 2024 | -7.1% | +34.7% |
| 2025 | +172.7% | +23.1% |
| 2026 | +0.2% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
WBD represents 4.65% of XLC's portfolio, so part of any move in XLC is WBD itself, and the correlation between them is partly mechanical.
Are WBD and XLC good diversifiers for each other?
Reasonably. At 0.36, WBD and XLC keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between WBD and XLC?
As of 2026-08-27, the correlation of weekly returns between WBD and XLC is 0.36 over 3 years, 0.27 over 1 year and 0.42 over 5 years.
Is XLC a good diversifier for WBD?
Reasonably. At 0.36, WBD and XLC keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.36 mean?
A reading of 0.36 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
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Related comparisons
Hubs: WBD correlations · XLC correlations
