DE vs XLI: Correlation
Deere & Company (DE) and Industrial Select Sector SPDR Fund (XLI) show a moderate relationship: their 3-year correlation of weekly returns is 0.58.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DE and XLI?
Across a 3-year window, the weekly returns of DE and XLI correlate at 0.58, moderate. Recent behaviour matches the longer record: 0.51 over 1 year against 0.58 over 3. Stretching to 5 years gives 0.63, with an annualized covariance of 245.3 %².
In DE's tracked universe of 33 assets, XLI sits right near the top at #3. Over the last 12 months DE came out ahead by 9.6 percentage points (+27.9% against +18.3%). On a rolling one-year basis the correlation drifted between 0.43 and 0.76, a moderate band. Note the risk asymmetry: DE runs 1.7 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.
DE vs XLI: side by side
| DE (Deere & Company) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +27.9% | +18.3% |
| 5-year return | +74.5% | +84.0% |
| Volatility (ann.) | 26.7% | 15.7% |
| Beta vs S&P 500 | 0.65 | 0.89 |
| Max drawdown (3Y) | -19.9% | -18.5% |
| Market cap | $168.1B | – |
| P/E (trailing) | 35.2 | – |
| Dividend yield | 1.02% | 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 | DE | XLI |
|---|---|---|
| 2022 | +26.6% | -5.6% |
| 2023 | -5.5% | +18.1% |
| 2024 | +7.6% | +17.3% |
| 2025 | +11.4% | +19.3% |
| 2026 | +34.5% | +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 DE at a 2.81% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are DE and XLI good diversifiers for each other?
Only partially. A correlation of 0.58 means DE 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 DE and XLI?
As of 2026-08-27, the correlation of weekly returns between DE and XLI is 0.58 over 3 years, 0.51 over 1 year and 0.63 over 5 years.
Is XLI a good diversifier for DE?
Only partially. A correlation of 0.58 means DE 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 0.58 mean?
A reading of 0.58 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/de-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/de-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: DE correlations · XLI correlations
