ACGL vs XLF: Correlation
Arch Capital Group (ACGL) and Financial Select Sector SPDR Fund (XLF) show a moderate relationship: their 3-year correlation of weekly returns is 0.42.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACGL and XLF?
Over the past 3 years, ACGL and XLF moved with a correlation of 0.42, which is moderate. Little has changed lately, as the 1-year reading of 0.34 lands near the 3-year figure. Over 5 years the correlation is 0.49, and the annualized covariance of weekly returns is 146.3 %².
Within ACGL's tracked universe of 36 assets, XLF comes in at #21 by 3-year correlation. Twelve-month performance is nearly a tie, at +7.7% for ACGL and +9.3% for XLF. On a rolling one-year basis the correlation drifted between 0.14 and 0.62, 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.
ACGL vs XLF: side by side
| ACGL (Arch Capital Group) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +7.7% | +9.3% |
| 5-year return | +151.8% | +64.2% |
| Volatility (ann.) | 21.5% | 16.2% |
| Beta vs S&P 500 | 0.28 | 0.84 |
| Max drawdown (3Y) | -22.4% | -15.5% |
| Market cap | $33.7B | – |
| P/E (trailing) | 7.9 | – |
| Dividend yield | 0.00% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | Financials | Sector ETF |
XLF is a Financial fund from State Street Investment Management: $57.9B under management, 77 holdings, a 0.08% expense ratio, a 1.42% trailing dividend yield.
Year-by-year returns
| Year | ACGL | XLF |
|---|---|---|
| 2022 | +41.2% | -10.6% |
| 2023 | +18.3% | +12.0% |
| 2024 | +30.8% | +30.6% |
| 2025 | +3.9% | +14.9% |
| 2026 | +3.0% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLF holds ACGL at a 0.43% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are ACGL and XLF good diversifiers for each other?
A fair diversifier. At 0.42, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between ACGL and XLF?
Using weekly returns as of 2026-08-27: 0.42 over 3 years, with 0.34 over the last year and 0.49 over 5 years.
Is XLF a good diversifier for ACGL?
A fair diversifier. At 0.42, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.42 mean?
On the −1 to +1 scale, 0.42 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.
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Related comparisons
Hubs: ACGL correlations · XLF correlations
