C vs XLF: Correlation
Citigroup (C) and Financial Select Sector SPDR Fund (XLF) show a very strong relationship: their 3-year correlation of weekly returns is 0.80.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are C and XLF?
On 3 years of weekly data the C/XLF correlation comes out at 0.80, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.71 lands near the 3-year figure. The 5-year figure is 0.79, and annualized covariance runs at 392.3 %².
XLF is one of the assets that tracks C most closely: it ranks #3 out of the 33 assets we track against C. The last year tells two different stories: C led by 30.6 percentage points, +39.9% for C against +9.3% for XLF. Stability stands out here, with the rolling one-year correlation confined to 0.65 through 0.89. One caveat on sizing: C is 1.9 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
C vs XLF: side by side
| C (Citigroup) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +39.9% | +9.3% |
| 5-year return | +119.6% | +64.2% |
| Volatility (ann.) | 30.3% | 16.2% |
| Beta vs S&P 500 | 1.39 | 0.84 |
| Max drawdown (3Y) | -31.3% | -15.5% |
| Market cap | $222.6B | – |
| P/E (trailing) | 14.4 | – |
| Dividend yield | 1.80% | 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 | C | XLF |
|---|---|---|
| 2022 | -22.1% | -10.6% |
| 2023 | +19.0% | +12.0% |
| 2024 | +41.9% | +30.6% |
| 2025 | +70.4% | +14.9% |
| 2026 | +15.4% | +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 C at a 2.77% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are C and XLF good diversifiers for each other?
Not really. At 0.80, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between C and XLF?
Using weekly returns as of 2026-08-27: 0.80 over 3 years, with 0.71 over the last year and 0.79 over 5 years.
Is XLF a good diversifier for C?
Not really. At 0.80, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.80 mean?
On the −1 to +1 scale, 0.80 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: C correlations · XLF correlations
