BGC vs XLF: Correlation
How closely do BGC Group, Inc. (BGC) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.44, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BGC and XLF?
Across a 3-year window, the weekly returns of BGC and XLF correlate at 0.44, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.28 versus 0.44 over 3 years. Stretching to 5 years gives 0.43, with an annualized covariance of 242.5 %².
Among the 10 assets we track against BGC, XLF ranks #5 by 3-year correlation. The trailing year gives BGC the advantage: +21.5% versus +9.3%, a 12.2-point spread. Risk is not evenly split, since BGC carries 2.1 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.
BGC vs XLF: side by side
| BGC (BGC Group, Inc.) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.5% | +9.3% |
| 5-year return | +146.1% | +64.2% |
| Volatility (ann.) | 34.0% | 16.2% |
| Beta vs S&P 500 | 0.90 | 0.84 |
| Max drawdown (3Y) | -34.5% | -15.5% |
| Market cap | $5.8B | – |
| P/E (trailing) | 29.5 | – |
| Dividend yield | 0.67% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | US Listed | 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 | BGC | XLF |
|---|---|---|
| 2022 | -18.1% | -10.6% |
| 2023 | +93.0% | +12.0% |
| 2024 | +26.5% | +30.6% |
| 2025 | -0.6% | +14.9% |
| 2026 | +36.3% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BGC and XLF good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.44 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between BGC and XLF?
The BGC/XLF correlation stands at 0.44 on a 3-year window (1 year: 0.28, 5 years: 0.43), computed from weekly returns as of 2026-08-27.
Is XLF a good diversifier for BGC?
Yes, to a useful degree: a correlation of 0.44 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.44 mean?
On the −1 to +1 scale, 0.44 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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Hubs: BGC correlations · XLF correlations
