CMI vs XLI: Correlation
Cummins (CMI) and Industrial Select Sector SPDR Fund (XLI) show a strong relationship: their 3-year correlation of weekly returns is 0.69.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CMI and XLI?
Over the past 3 years, CMI and XLI moved with a correlation of 0.69, which is strong. The past 12 months show a weaker link (0.57) than the 3-year average (0.69). Over 5 years the correlation is 0.73, and the annualized covariance of weekly returns is 279.5 %².
XLI is one of the assets that tracks CMI most closely: it ranks #1 out of the 36 assets we track against CMI. The last year tells two different stories: CMI led by 26.8 percentage points, +45.1% for CMI against +18.3% for XLI. Across three years, the rolling one-year figure varied moderately, from 0.53 to 0.85. One caveat on sizing: CMI is 1.6 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.
CMI vs XLI: side by side
| CMI (Cummins) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +45.1% | +18.3% |
| 5-year return | +169.6% | +84.0% |
| Volatility (ann.) | 25.9% | 15.7% |
| Beta vs S&P 500 | 1.05 | 0.89 |
| Max drawdown (3Y) | -30.5% | -18.5% |
| Market cap | $79.0B | – |
| P/E (trailing) | 29.6 | – |
| Dividend yield | 1.38% | 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 | CMI | XLI |
|---|---|---|
| 2022 | +14.1% | -5.6% |
| 2023 | +1.7% | +18.1% |
| 2024 | +48.9% | +17.3% |
| 2025 | +49.4% | +19.3% |
| 2026 | +13.6% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 1.41% of XLI is CMI itself, so the fund partly moves with the stock by construction.
Are CMI and XLI good diversifiers for each other?
To a limited degree. At 0.69 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 CMI and XLI?
As of 2026-08-27, the correlation of weekly returns between CMI and XLI is 0.69 over 3 years, 0.57 over 1 year and 0.73 over 5 years.
Is XLI a good diversifier for CMI?
To a limited degree. At 0.69 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 0.69 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/cmi-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/cmi-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: CMI correlations · XLI correlations
