ESAB vs XLI: Correlation
ESAB Corporation (ESAB) and Industrial Select Sector SPDR Fund (XLI) show a strong relationship: their 3-year correlation of weekly returns is 0.64.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ESAB and XLI?
Over the past 3 years, ESAB and XLI moved with a correlation of 0.64, which is strong. Little has changed lately, as the 1-year reading of 0.61 lands near the 3-year figure. Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 365.3 %².
Few assets follow ESAB as closely as XLI, which ranks #3 of 13 tracked partners. Correlation aside, the last 12 months split them widely, with XLI ahead by 50.8 points (-32.5% versus +18.3%). Risk is not evenly split, since ESAB carries 2.3 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.
ESAB vs XLI: side by side
| ESAB (ESAB Corporation) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -32.5% | +18.3% |
| 5-year return | +60.4% | +84.0% |
| Volatility (ann.) | 36.3% | 15.7% |
| Beta vs S&P 500 | 1.30 | 0.89 |
| Max drawdown (3Y) | -41.6% | -18.5% |
| Market cap | $4.9B | – |
| P/E (trailing) | 25.8 | – |
| Dividend yield | 0.51% | 1.15% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $32.9B |
| Sector / category | US Listed | 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 | ESAB | XLI |
|---|---|---|
| 2022 | – | -5.6% |
| 2023 | +85.2% | +18.1% |
| 2024 | +38.9% | +17.3% |
| 2025 | -6.5% | +19.3% |
| 2026 | -29.1% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ESAB and XLI good diversifiers for each other?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ESAB and XLI?
The ESAB/XLI correlation stands at 0.64 on a 3-year window (1 year: 0.61, 5 years: 0.65), computed from weekly returns as of 2026-08-27.
Is XLI a good diversifier for ESAB?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.64 mean?
On the −1 to +1 scale, 0.64 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/esab-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/esab-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ESAB correlations · XLI correlations
