XLY vs YUM: Correlation
Measured on weekly returns over the past three years, Consumer Discretionary Select Sector SPDR Fund (XLY) and Yum! Brands (YUM) carry a correlation of 0.22, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are XLY and YUM?
Across a 3-year window, the weekly returns of XLY and YUM correlate at 0.22, weak. Little has changed lately, as the 1-year reading of 0.17 lands near the 3-year figure. Stretching to 5 years gives 0.39, with an annualized covariance of 93.8 %².
By 3-year correlation, YUM places #117 of the 131 assets tracked against XLY. Over the last 12 months YUM came out ahead by 5.8 percentage points (-0.1% against +5.7%). On a rolling one-year basis the correlation drifted between 0.08 and 0.56, a moderate band.
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 YUM: side by side
| XLY (Consumer Discretionary Select Sector SPDR Fund) | YUM (Yum! Brands) | |
|---|---|---|
| 1-year return | -0.1% | +5.7% |
| 5-year return | +31.8% | +26.2% |
| Volatility (ann.) | 19.7% | 21.3% |
| Beta vs S&P 500 | 1.15 | 0.34 |
| Max drawdown (3Y) | -26.0% | -14.5% |
| Market cap | – | $41.1B |
| P/E (trailing) | – | 19.0 |
| Dividend yield | 0.78% | 0.95% |
| Expense ratio | 0.08% | – |
| Assets under management | $22.5B | – |
| Sector / category | Sector ETF | Consumer Discretionary |
On the fund side, XLY sits in the Consumer Cyclical category at State Street Investment Management, with $22.5B under management, 47 holdings, a 0.08% expense ratio, a 0.78% trailing dividend yield.
Year-by-year returns
| Year | XLY | YUM |
|---|---|---|
| 2022 | -36.3% | -6.0% |
| 2023 | +39.6% | +3.9% |
| 2024 | +26.5% | +4.7% |
| 2025 | +7.4% | +14.9% |
| 2026 | -2.6% | +0.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLY holds YUM at a 1.06% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are XLY and YUM good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.22 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between XLY and YUM?
The XLY/YUM correlation stands at 0.22 on a 3-year window (1 year: 0.17, 5 years: 0.39), computed from weekly returns as of 2026-08-27.
Is YUM a good diversifier for XLY?
Yes, to a useful degree: a correlation of 0.22 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.22 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-yum.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/xly-vs-yum/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: XLY correlations · YUM correlations
