AXON vs XLI: Correlation
Measured on weekly returns over the past three years, Axon Enterprise (AXON) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of 0.34, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AXON and XLI?
Over the past 3 years, AXON and XLI moved with a correlation of 0.34, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.08 versus 0.34 over 3 years. Over 5 years the correlation is 0.43, and the annualized covariance of weekly returns is 311.2 %².
Within AXON's tracked universe of 35 assets, XLI comes in at #24 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLI outperformed by 38.9 percentage points (-20.6% for AXON against +18.3% for XLI). The relationship is regime-dependent: the rolling one-year correlation swung between 0.05 and 0.64 over the past three years, so this pair behaves very differently depending on the market environment. Note the risk asymmetry: AXON runs 3.7 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.
AXON vs XLI: side by side
| AXON (Axon Enterprise) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -20.6% | +18.3% |
| 5-year return | +216.9% | +84.0% |
| Volatility (ann.) | 57.4% | 15.7% |
| Beta vs S&P 500 | 1.51 | 0.89 |
| Max drawdown (3Y) | -60.3% | -18.5% |
| Market cap | $49.7B | – |
| P/E (trailing) | 250.5 | – |
| Dividend yield | 0.00% | 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 | AXON | XLI |
|---|---|---|
| 2022 | +5.7% | -5.6% |
| 2023 | +55.7% | +18.1% |
| 2024 | +130.1% | +17.3% |
| 2025 | -4.4% | +19.3% |
| 2026 | +7.6% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.86% of XLI is AXON itself, so the fund partly moves with the stock by construction.
Are AXON and XLI good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.34 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between AXON and XLI?
As of 2026-08-27, the correlation of weekly returns between AXON and XLI is 0.34 over 3 years, 0.08 over 1 year and 0.43 over 5 years.
Is XLI a good diversifier for AXON?
Yes, to a useful degree: a correlation of 0.34 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.34 mean?
On the −1 to +1 scale, 0.34 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/axon-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/axon-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AXON correlations · XLI correlations
