WSM vs XLY: Correlation
Measured on weekly returns over the past three years, Williams-Sonoma, Inc. (WSM) and Consumer Discretionary Select Sector SPDR Fund (XLY) carry a correlation of 0.47, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are WSM and XLY?
Over the past 3 years, WSM and XLY moved with a correlation of 0.47, which is moderate. Recent behaviour matches the longer record: 0.44 over 1 year against 0.47 over 3. Over 5 years the correlation is 0.54, and the annualized covariance of weekly returns is 395.6 %².
Among the 36 assets we track against WSM, XLY ranks #19 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months WSM outperformed by 25.9 percentage points (+25.8% for WSM against -0.1% for XLY). The rolling one-year correlation moved between 0.28 and 0.75 over the past three years, a moderate range. One caveat on sizing: WSM is 2.2 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.
WSM vs XLY: side by side
| WSM (Williams-Sonoma, Inc.) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.8% | -0.1% |
| 5-year return | +182.0% | +31.8% |
| Volatility (ann.) | 43.0% | 19.7% |
| Beta vs S&P 500 | 1.33 | 1.15 |
| Max drawdown (3Y) | -36.8% | -26.0% |
| Market cap | $28.1B | – |
| P/E (trailing) | 24.4 | – |
| Dividend yield | 0.56% | 0.78% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $22.5B |
| Sector / category | Consumer Discretionary | 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 | WSM | XLY |
|---|---|---|
| 2022 | -30.5% | -36.3% |
| 2023 | +80.2% | +39.6% |
| 2024 | +86.6% | +26.5% |
| 2025 | -2.1% | +7.4% |
| 2026 | +34.9% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.7% of XLY is WSM itself, so the fund partly moves with the stock by construction.
Are WSM and XLY good diversifiers for each other?
A fair diversifier. At 0.47, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between WSM and XLY?
The WSM/XLY correlation stands at 0.47 on a 3-year window (1 year: 0.44, 5 years: 0.54), computed from weekly returns as of 2026-08-27.
Is XLY a good diversifier for WSM?
A fair diversifier. At 0.47, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.47 mean?
A reading of 0.47 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/wsm-vs-xly.json
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Related comparisons
Hubs: WSM correlations · XLY correlations
