WMT vs XLP: Correlation
Walmart (WMT) and Consumer Staples Select Sector SPDR Fund (XLP) show a moderate relationship: their 3-year correlation of weekly returns is 0.52.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are WMT and XLP?
Over the past 3 years, WMT and XLP moved with a correlation of 0.52, which is moderate. The past 12 months show a tighter link (0.63) than the 3-year average (0.52). Over 5 years the correlation is 0.62, and the annualized covariance of weekly returns is 133.2 %².
Few assets follow WMT as closely as XLP, which ranks #2 of 33 tracked partners. Their 12-month results are close: +7.7% for WMT against +8.3% for XLP. This link changes with the market regime, having swung between 0.24 and 0.77 on a rolling one-year basis. Note the risk asymmetry: WMT 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.
WMT vs XLP: side by side
| WMT (Walmart) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +7.7% | +8.3% |
| 5-year return | +121.9% | +34.7% |
| Volatility (ann.) | 23.0% | 11.1% |
| Beta vs S&P 500 | 0.53 | 0.23 |
| Max drawdown (3Y) | -23.3% | -9.7% |
| Market cap | $816.7B | – |
| P/E (trailing) | 37.1 | – |
| Dividend yield | 0.92% | 2.58% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $14.6B |
| Sector / category | Consumer Staples | 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 | WMT | XLP |
|---|---|---|
| 2022 | -0.5% | -0.8% |
| 2023 | +12.9% | -0.8% |
| 2024 | +74.0% | +12.2% |
| 2025 | +24.5% | +1.5% |
| 2026 | -7.3% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLP holds WMT at a 9.62% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are WMT and XLP good diversifiers for each other?
Only partially. A correlation of 0.52 means WMT and XLP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between WMT and XLP?
The WMT/XLP correlation stands at 0.52 on a 3-year window (1 year: 0.63, 5 years: 0.62), computed from weekly returns as of 2026-08-27.
Is XLP a good diversifier for WMT?
Only partially. A correlation of 0.52 means WMT and XLP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.52 mean?
A reading of 0.52 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/wmt-vs-xlp.json
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[](https://www.pairbook.io/pair/wmt-vs-xlp/)
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Related comparisons
Hubs: WMT correlations · XLP correlations
