AXP vs XLF: Correlation
American Express (AXP) and Financial Select Sector SPDR Fund (XLF) show a strong relationship: their 3-year correlation of weekly returns is 0.79.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AXP and XLF?
On 3 years of weekly data the AXP/XLF correlation comes out at 0.79, strong. Lately the two have drifted apart, with the 1-year correlation at 0.63 versus 0.79 over 3 years. The 5-year figure is 0.80, and annualized covariance runs at 341.6 %².
XLF is one of the assets that tracks AXP most closely: it ranks #1 out of the 35 assets we track against AXP. Neither side won the trailing year by much: +4.7% against +9.3%. The rolling one-year correlation moved between 0.64 and 0.90 over the past three years, a moderate range. Risk is not evenly split, since AXP carries 1.6 times the volatility of the other side.
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.
AXP vs XLF: side by side
| AXP (American Express) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +4.7% | +9.3% |
| 5-year return | +116.2% | +64.2% |
| Volatility (ann.) | 26.6% | 16.2% |
| Beta vs S&P 500 | 1.20 | 0.84 |
| Max drawdown (3Y) | -28.8% | -15.5% |
| Market cap | $225.7B | – |
| P/E (trailing) | 20.4 | – |
| Dividend yield | 1.05% | 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 | AXP | XLF |
|---|---|---|
| 2022 | -8.5% | -10.6% |
| 2023 | +28.7% | +12.0% |
| 2024 | +60.3% | +30.6% |
| 2025 | +26.0% | +14.9% |
| 2026 | -8.9% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 2.17% of XLF is AXP itself, so the fund partly moves with the stock by construction.
Are AXP and XLF good diversifiers for each other?
To a limited degree. At 0.79 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 AXP and XLF?
The AXP/XLF correlation stands at 0.79 on a 3-year window (1 year: 0.63, 5 years: 0.80), computed from weekly returns as of 2026-08-27.
Is XLF a good diversifier for AXP?
To a limited degree. At 0.79 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 0.79 mean?
On the −1 to +1 scale, 0.79 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.
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Related comparisons
Hubs: AXP correlations · XLF correlations
