ALLE vs XLI: Correlation
Measured on weekly returns over the past three years, Allegion (ALLE) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of 0.55, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ALLE and XLI?
On 3 years of weekly data the ALLE/XLI correlation comes out at 0.55, moderate. The link has loosened recently: the 1-year correlation (0.38) runs below the 3-year figure (0.55). The 5-year figure is 0.65, and annualized covariance runs at 212.1 %².
By 3-year correlation, XLI places #21 of the 33 assets tracked against ALLE. Correlation aside, the last 12 months split them widely, with XLI ahead by 24.7 points (-6.4% versus +18.3%). On a rolling one-year basis the correlation drifted between 0.39 and 0.81, a moderate band. Note the risk asymmetry: ALLE runs 1.5 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
ALLE vs XLI: side by side
| ALLE (Allegion) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -6.4% | +18.3% |
| 5-year return | +19.4% | +84.0% |
| Volatility (ann.) | 24.3% | 15.7% |
| Beta vs S&P 500 | 0.60 | 0.89 |
| Max drawdown (3Y) | -29.8% | -18.5% |
| Market cap | $13.6B | – |
| P/E (trailing) | 21.0 | – |
| Dividend yield | 1.32% | 1.15% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $32.9B |
| Sector / category | Industrials | 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 | ALLE | XLI |
|---|---|---|
| 2022 | -19.3% | -5.6% |
| 2023 | +22.3% | +18.1% |
| 2024 | +4.7% | +17.3% |
| 2025 | +22.8% | +19.3% |
| 2026 | +1.1% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.24% of XLI is ALLE itself, so the fund partly moves with the stock by construction.
Are ALLE and XLI good diversifiers for each other?
To a limited degree. At 0.55 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 ALLE and XLI?
The ALLE/XLI correlation stands at 0.55 on a 3-year window (1 year: 0.38, 5 years: 0.65), computed from weekly returns as of 2026-08-27.
Is XLI a good diversifier for ALLE?
To a limited degree. At 0.55 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 0.55 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/alle-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/alle-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ALLE correlations · XLI correlations
