AGO vs XLF: Correlation
Assured Guaranty Ltd. (AGO) and Financial Select Sector SPDR Fund (XLF) show a moderate relationship: their 3-year correlation of weekly returns is 0.59.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AGO and XLF?
Over the past 3 years, AGO and XLF moved with a correlation of 0.59, which is moderate. The relationship has been stable: the 1-year correlation (0.52) sits close to the 3-year figure. Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 205.3 %².
XLF is one of the assets that tracks AGO most closely: it ranks #2 out of the 14 assets we track against AGO. Their recent paths diverged sharply: over the last 12 months XLF outperformed by 15.5 percentage points (-6.2% for AGO against +9.3% for XLF).
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.
AGO vs XLF: side by side
| AGO (Assured Guaranty Ltd.) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -6.2% | +9.3% |
| 5-year return | +64.9% | +64.2% |
| Volatility (ann.) | 21.4% | 16.2% |
| Beta vs S&P 500 | 0.51 | 0.84 |
| Max drawdown (3Y) | -22.0% | -15.5% |
| Market cap | $3.3B | – |
| P/E (trailing) | 10.1 | – |
| Dividend yield | 1.90% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | US Listed | 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 | AGO | XLF |
|---|---|---|
| 2022 | +26.2% | -10.6% |
| 2023 | +22.5% | +12.0% |
| 2024 | +22.1% | +30.6% |
| 2025 | +0.6% | +14.9% |
| 2026 | -14.4% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AGO and XLF good diversifiers for each other?
Somewhat, no more. With 0.59 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between AGO and XLF?
Using weekly returns as of 2026-08-27: 0.59 over 3 years, with 0.52 over the last year and 0.65 over 5 years.
Is XLF a good diversifier for AGO?
Somewhat, no more. With 0.59 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.59 mean?
A reading of 0.59 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: AGO correlations · XLF correlations
