EMR vs XLI: Correlation
Emerson Electric (EMR) and Industrial Select Sector SPDR Fund (XLI) show a strong relationship: their 3-year correlation of weekly returns is 0.76.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EMR and XLI?
On 3 years of weekly data the EMR/XLI correlation comes out at 0.76, strong. Little has changed lately, as the 1-year reading of 0.74 lands near the 3-year figure. The 5-year figure is 0.78, and annualized covariance runs at 338.7 %².
Few assets follow EMR as closely as XLI, which ranks #1 of 47 tracked partners. Neither side won the trailing year by much: +20.0% against +18.3%. Across three years, the rolling one-year figure varied moderately, from 0.56 to 0.85. One caveat on sizing: EMR is 1.8 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.
EMR vs XLI: side by side
| EMR (Emerson Electric) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.0% | +18.3% |
| 5-year return | +65.4% | +84.0% |
| Volatility (ann.) | 28.3% | 15.7% |
| Beta vs S&P 500 | 1.29 | 0.89 |
| Max drawdown (3Y) | -29.6% | -18.5% |
| Market cap | $88.0B | – |
| P/E (trailing) | 34.5 | – |
| Dividend yield | 1.39% | 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 | EMR | XLI |
|---|---|---|
| 2022 | +5.7% | -5.6% |
| 2023 | +3.8% | +18.1% |
| 2024 | +29.7% | +17.3% |
| 2025 | +8.9% | +19.3% |
| 2026 | +20.2% | +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 EMR at a 1.56% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are EMR and XLI good diversifiers for each other?
Only partially. A correlation of 0.76 means EMR 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 EMR and XLI?
Using weekly returns as of 2026-08-27: 0.76 over 3 years, with 0.74 over the last year and 0.78 over 5 years.
Is XLI a good diversifier for EMR?
Only partially. A correlation of 0.76 means EMR 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 0.76 mean?
A reading of 0.76 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/emr-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/emr-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: EMR correlations · XLI correlations
