XLY vs XYZ: Correlation
How closely do Consumer Discretionary Select Sector SPDR Fund (XLY) and Block, Inc. (XYZ) trade together? Their weekly returns over three years give a correlation of 0.57, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are XLY and XYZ?
On 3 years of weekly data the XLY/XYZ correlation comes out at 0.57, moderate. The relationship has been stable: the 1-year correlation (0.49) sits close to the 3-year figure. The 5-year figure is 0.62, and annualized covariance runs at 560.1 %².
Among the 131 assets we track against XLY, XYZ ranks #45 by 3-year correlation. The trailing year gives XYZ the advantage: -0.1% versus +6.9%, a 7.0-point spread. The link looks structural: the rolling one-year correlation barely moved, holding between 0.46 and 0.70. Risk is not evenly split, since XYZ carries 2.5 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.
XLY vs XYZ: side by side
| XLY (Consumer Discretionary Select Sector SPDR Fund) | XYZ (Block, Inc.) | |
|---|---|---|
| 1-year return | -0.1% | +6.9% |
| 5-year return | +31.8% | -68.8% |
| Volatility (ann.) | 19.7% | 50.2% |
| Beta vs S&P 500 | 1.15 | 1.80 |
| Max drawdown (3Y) | -26.0% | -53.0% |
| Market cap | – | $51.0B |
| P/E (trailing) | – | 151.5 |
| Dividend yield | 0.78% | 0.00% |
| Expense ratio | 0.08% | – |
| Assets under management | $22.5B | – |
| Sector / category | Sector ETF | Financials |
XLY, State Street Investment Management's Consumer Cyclical fund, carries $22.5B under management, 47 holdings, a 0.08% expense ratio, a 0.78% trailing dividend yield.
Year-by-year returns
| Year | XLY | XYZ |
|---|---|---|
| 2022 | -36.3% | -61.1% |
| 2023 | +39.6% | +23.1% |
| 2024 | +26.5% | +9.9% |
| 2025 | +7.4% | -23.4% |
| 2026 | -2.6% | +30.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLY and XYZ good diversifiers for each other?
To a limited degree. At 0.57 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between XLY and XYZ?
As of 2026-08-27, the correlation of weekly returns between XLY and XYZ is 0.57 over 3 years, 0.49 over 1 year and 0.62 over 5 years.
Is XYZ a good diversifier for XLY?
To a limited degree. At 0.57 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.57 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/xly-vs-xyz.json
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Related comparisons
Hubs: XLY correlations · XYZ correlations
