ERIE vs XLF: Correlation
How closely do Erie Indemnity (ERIE) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.30, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ERIE and XLF?
Across a 3-year window, the weekly returns of ERIE and XLF correlate at 0.30, moderate. Recent behaviour matches the longer record: 0.30 over 1 year against 0.30 over 3. Stretching to 5 years gives 0.29, with an annualized covariance of 145.7 %².
By 3-year correlation, XLF places #21 of the 33 assets tracked against ERIE. The last year tells two different stories: XLF led by 33.8 percentage points, -24.5% for ERIE against +9.3% for XLF. Across three years, the rolling one-year figure varied moderately, from 0.04 to 0.35. Risk is not evenly split, since ERIE carries 1.9 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.
ERIE vs XLF: side by side
| ERIE (Erie Indemnity) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -24.5% | +9.3% |
| 5-year return | +61.3% | +64.2% |
| Volatility (ann.) | 30.3% | 16.2% |
| Beta vs S&P 500 | 0.37 | 0.84 |
| Max drawdown (3Y) | -60.9% | -15.5% |
| Market cap | $13.6B | – |
| P/E (trailing) | 23.4 | – |
| Dividend yield | 2.24% | 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 | ERIE | XLF |
|---|---|---|
| 2022 | +32.0% | -10.6% |
| 2023 | +37.3% | +12.0% |
| 2024 | +24.7% | +30.6% |
| 2025 | -29.4% | +14.9% |
| 2026 | -8.0% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
ERIE represents 0.08% of XLF's portfolio, so part of any move in XLF is ERIE itself, and the correlation between them is partly mechanical.
Are ERIE and XLF good diversifiers for each other?
A fair diversifier. At 0.30, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between ERIE and XLF?
The ERIE/XLF correlation stands at 0.30 on a 3-year window (1 year: 0.30, 5 years: 0.29), computed from weekly returns as of 2026-08-27.
Is XLF a good diversifier for ERIE?
A fair diversifier. At 0.30, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.30 mean?
A reading of 0.30 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: ERIE correlations · XLF correlations
