XLP vs YUM: Correlation
Measured on weekly returns over the past three years, Consumer Staples Select Sector SPDR Fund (XLP) and Yum! Brands (YUM) carry a correlation of 0.40, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are XLP and YUM?
Across a 3-year window, the weekly returns of XLP and YUM correlate at 0.40, moderate. The relationship has been stable: the 1-year correlation (0.39) sits close to the 3-year figure. Stretching to 5 years gives 0.50, with an annualized covariance of 95.7 %².
By 3-year correlation, YUM places #61 of the 110 assets tracked against XLP. Twelve-month performance is nearly a tie, at +8.3% for XLP and +5.7% for YUM. The relationship is regime-dependent: the rolling one-year correlation swung between 0.28 and 0.79 over the past three years, so this pair behaves very differently depending on the market environment. Risk is not evenly split, since YUM carries 1.9 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.
XLP vs YUM: side by side
| XLP (Consumer Staples Select Sector SPDR Fund) | YUM (Yum! Brands) | |
|---|---|---|
| 1-year return | +8.3% | +5.7% |
| 5-year return | +34.7% | +26.2% |
| Volatility (ann.) | 11.1% | 21.3% |
| Beta vs S&P 500 | 0.23 | 0.34 |
| Max drawdown (3Y) | -9.7% | -14.5% |
| Market cap | – | $41.1B |
| P/E (trailing) | – | 19.0 |
| Dividend yield | 2.58% | 0.95% |
| Expense ratio | 0.08% | – |
| Assets under management | $14.6B | – |
| Sector / category | Sector ETF | Consumer Discretionary |
XLP is a Consumer Defensive fund from State Street Investment Management: $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Year-by-year returns
| Year | XLP | YUM |
|---|---|---|
| 2022 | -0.8% | -6.0% |
| 2023 | -0.8% | +3.9% |
| 2024 | +12.2% | +4.7% |
| 2025 | +1.5% | +14.9% |
| 2026 | +10.9% | +0.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLP and YUM good diversifiers for each other?
Reasonably. At 0.40, XLP and YUM keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between XLP and YUM?
As of 2026-08-27, the correlation of weekly returns between XLP and YUM is 0.40 over 3 years, 0.39 over 1 year and 0.50 over 5 years.
Is YUM a good diversifier for XLP?
Reasonably. At 0.40, XLP and YUM keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.40 mean?
On the −1 to +1 scale, 0.40 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/xlp-vs-yum.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/xlp-vs-yum/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: XLP correlations · YUM correlations
