AIR vs XLI: Correlation
Measured on weekly returns over the past three years, AAR Corp. (AIR) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of 0.53, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AIR and XLI?
On 3 years of weekly data the AIR/XLI correlation comes out at 0.53, moderate. Little has changed lately, as the 1-year reading of 0.56 lands near the 3-year figure. The 5-year figure is 0.59, and annualized covariance runs at 309.7 %².
In AIR's tracked universe of 10 assets, XLI sits right near the top at #2. Correlation aside, the last 12 months split them widely, with AIR ahead by 60.9 points (+79.2% versus +18.3%). One caveat on sizing: AIR is 2.4 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
AIR vs XLI: side by side
| AIR (AAR Corp.) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +79.2% | +18.3% |
| 5-year return | +302.1% | +84.0% |
| Volatility (ann.) | 37.3% | 15.7% |
| Beta vs S&P 500 | 1.06 | 0.89 |
| Max drawdown (3Y) | -35.7% | -18.5% |
| Market cap | $5.5B | – |
| P/E (trailing) | 28.0 | – |
| Dividend yield | 0.00% | 1.15% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $32.9B |
| Sector / category | US Listed | Sector ETF |
XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Year-by-year returns
| Year | AIR | XLI |
|---|---|---|
| 2022 | +15.0% | -5.6% |
| 2023 | +39.0% | +18.1% |
| 2024 | -1.8% | +17.3% |
| 2025 | +35.1% | +19.3% |
| 2026 | +64.2% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AIR and XLI good diversifiers for each other?
Only partially. A correlation of 0.53 means AIR and XLI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between AIR and XLI?
As of 2026-08-27, the correlation of weekly returns between AIR and XLI is 0.53 over 3 years, 0.56 over 1 year and 0.59 over 5 years.
Is XLI a good diversifier for AIR?
Only partially. A correlation of 0.53 means AIR and XLI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.53 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/air-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/air-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AIR correlations · XLI correlations
