CFG vs XLF: Correlation
Citizens Financial Group (CFG) and Financial Select Sector SPDR Fund (XLF) show a strong relationship: their 3-year correlation of weekly returns is 0.78.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CFG and XLF?
On 3 years of weekly data the CFG/XLF correlation comes out at 0.78, strong. The past 12 months show a weaker link (0.65) than the 3-year average (0.78). The 5-year figure is 0.79, and annualized covariance runs at 392.3 %².
Among the 46 assets we track against CFG, XLF ranks #18 by 3-year correlation. Correlation aside, the last 12 months split them widely, with CFG ahead by 30.0 points (+39.3% versus +9.3%). Stability stands out here, with the rolling one-year correlation confined to 0.67 through 0.91. Note the risk asymmetry: CFG runs 1.9 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.
CFG vs XLF: side by side
| CFG (Citizens Financial Group) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +39.3% | +9.3% |
| 5-year return | +98.3% | +64.2% |
| Volatility (ann.) | 31.0% | 16.2% |
| Beta vs S&P 500 | 1.16 | 0.84 |
| Max drawdown (3Y) | -29.1% | -15.5% |
| Market cap | $29.6B | – |
| P/E (trailing) | 15.4 | – |
| Dividend yield | 2.55% | 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 | CFG | XLF |
|---|---|---|
| 2022 | -13.4% | -10.6% |
| 2023 | -11.0% | +12.0% |
| 2024 | +38.0% | +30.6% |
| 2025 | +38.6% | +14.9% |
| 2026 | +22.7% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.36% of XLF is CFG itself, so the fund partly moves with the stock by construction.
Are CFG and XLF good diversifiers for each other?
To a limited degree. At 0.78 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 CFG and XLF?
As of 2026-08-27, the correlation of weekly returns between CFG and XLF is 0.78 over 3 years, 0.65 over 1 year and 0.79 over 5 years.
Is XLF a good diversifier for CFG?
To a limited degree. At 0.78 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 0.78 mean?
On the −1 to +1 scale, 0.78 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: CFG correlations · XLF correlations
