AOS vs XLI: Correlation
A. O. Smith (AOS) and Industrial Select Sector SPDR Fund (XLI) show a strong relationship: their 3-year correlation of weekly returns is 0.60.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AOS and XLI?
Over the past 3 years, AOS and XLI moved with a correlation of 0.60, which is strong. Recent behaviour matches the longer record: 0.60 over 1 year against 0.60 over 3. Over 5 years the correlation is 0.68, and the annualized covariance of weekly returns is 221.1 %².
By 3-year correlation, XLI places #16 of the 33 assets tracked against AOS. The last year tells two different stories: XLI led by 30.9 percentage points, -12.6% for AOS against +18.3% for XLI. The rolling one-year correlation moved between 0.45 and 0.78 over the past three years, a moderate range.
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.
AOS vs XLI: side by side
| AOS (A. O. Smith) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -12.6% | +18.3% |
| 5-year return | -6.7% | +84.0% |
| Volatility (ann.) | 23.5% | 15.7% |
| Beta vs S&P 500 | 0.67 | 0.89 |
| Max drawdown (3Y) | -36.9% | -18.5% |
| Market cap | $8.4B | – |
| P/E (trailing) | 17.4 | – |
| Dividend yield | 2.27% | 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 | AOS | XLI |
|---|---|---|
| 2022 | -32.1% | -5.6% |
| 2023 | +46.7% | +18.1% |
| 2024 | -15.9% | +17.3% |
| 2025 | +0.1% | +19.3% |
| 2026 | -5.8% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.12% of XLI is AOS itself, so the fund partly moves with the stock by construction.
Are AOS and XLI good diversifiers for each other?
Only partially. A correlation of 0.60 means AOS 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 AOS and XLI?
Using weekly returns as of 2026-08-27: 0.60 over 3 years, with 0.60 over the last year and 0.68 over 5 years.
Is XLI a good diversifier for AOS?
Only partially. A correlation of 0.60 means AOS 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 0.60 mean?
On the −1 to +1 scale, 0.60 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/aos-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/aos-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AOS correlations · XLI correlations
