CARR vs XLI: Correlation
Measured on weekly returns over the past three years, Carrier Global (CARR) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of 0.68, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CARR and XLI?
On 3 years of weekly data the CARR/XLI correlation comes out at 0.68, strong. Recent behaviour matches the longer record: 0.62 over 1 year against 0.68 over 3. The 5-year figure is 0.72, and annualized covariance runs at 347.6 %².
Within CARR's tracked universe of 29 assets, XLI comes in at #4 by 3-year correlation. The last year tells two different stories: XLI led by 29.9 percentage points, -11.6% for CARR against +18.3% for XLI. Stability stands out here, with the rolling one-year correlation confined to 0.59 through 0.80. Risk is not evenly split, since CARR 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.
CARR vs XLI: side by side
| CARR (Carrier Global) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -11.6% | +18.3% |
| 5-year return | +8.8% | +84.0% |
| Volatility (ann.) | 32.6% | 15.7% |
| Beta vs S&P 500 | 1.21 | 0.89 |
| Max drawdown (3Y) | -38.1% | -18.5% |
| Market cap | $48.5B | – |
| P/E (trailing) | 42.0 | – |
| Dividend yield | 1.61% | 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 | CARR | XLI |
|---|---|---|
| 2022 | -22.7% | -5.6% |
| 2023 | +41.5% | +18.1% |
| 2024 | +20.3% | +17.3% |
| 2025 | -21.8% | +19.3% |
| 2026 | +12.6% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLI holds CARR at a 0.81% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are CARR and XLI good diversifiers for each other?
Only partially. A correlation of 0.68 means CARR and XLI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between CARR and XLI?
Using weekly returns as of 2026-08-27: 0.68 over 3 years, with 0.62 over the last year and 0.72 over 5 years.
Is XLI a good diversifier for CARR?
Only partially. A correlation of 0.68 means CARR and XLI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.68 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/carr-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/carr-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: CARR correlations · XLI correlations
