ARES vs XLF: Correlation
Measured on weekly returns over the past three years, Ares Management (ARES) and Financial Select Sector SPDR Fund (XLF) carry a correlation of 0.59, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARES and XLF?
Across a 3-year window, the weekly returns of ARES and XLF correlate at 0.59, moderate. The past 12 months show a weaker link (0.39) than the 3-year average (0.59). Stretching to 5 years gives 0.65, with an annualized covariance of 337.9 %².
Among the 32 assets we track against ARES, XLF ranks #19 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLF outperformed by 27.0 percentage points (-17.7% for ARES against +9.3% for XLF). Across three years, the rolling one-year figure varied moderately, from 0.36 to 0.82. Note the risk asymmetry: ARES runs 2.2 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.
ARES vs XLF: side by side
| ARES (Ares Management) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -17.7% | +9.3% |
| 5-year return | +118.7% | +64.2% |
| Volatility (ann.) | 35.5% | 16.2% |
| Beta vs S&P 500 | 1.55 | 0.84 |
| Max drawdown (3Y) | -50.0% | -15.5% |
| Market cap | $47.0B | – |
| P/E (trailing) | 65.0 | – |
| Dividend yield | 3.48% | 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 | ARES | XLF |
|---|---|---|
| 2022 | -12.8% | -10.6% |
| 2023 | +79.5% | +12.0% |
| 2024 | +52.7% | +30.6% |
| 2025 | -6.2% | +14.9% |
| 2026 | -9.8% | +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 ARES at a 0.36% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are ARES 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 ARES and XLF?
As of 2026-08-27, the correlation of weekly returns between ARES and XLF is 0.59 over 3 years, 0.39 over 1 year and 0.65 over 5 years.
Is XLF a good diversifier for ARES?
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?
On the −1 to +1 scale, 0.59 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/ares-vs-xlf.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ares-vs-xlf/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ARES correlations · XLF correlations
