ESE vs XLI: Correlation
ESCO Technologies Inc. (ESE) and Industrial Select Sector SPDR Fund (XLI) show a moderate relationship: their 3-year correlation of weekly returns is 0.56.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ESE and XLI?
Over the past 3 years, ESE and XLI moved with a correlation of 0.56, which is moderate. Recent behaviour matches the longer record: 0.56 over 1 year against 0.56 over 3. Over 5 years the correlation is 0.62, and the annualized covariance of weekly returns is 261.9 %².
Few assets follow ESE as closely as XLI, which ranks #3 of 11 tracked partners. Correlation aside, the last 12 months split them widely, with ESE ahead by 23.7 points (+42.0% versus +18.3%). Note the risk asymmetry: ESE runs 1.9 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.
ESE vs XLI: side by side
| ESE (ESCO Technologies Inc.) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +42.0% | +18.3% |
| 5-year return | +214.2% | +84.0% |
| Volatility (ann.) | 29.6% | 15.7% |
| Beta vs S&P 500 | 0.79 | 0.89 |
| Max drawdown (3Y) | -22.3% | -18.5% |
| Market cap | $7.3B | – |
| P/E (trailing) | 52.3 | – |
| Dividend yield | 0.11% | 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 | ESE | XLI |
|---|---|---|
| 2022 | -2.3% | -5.6% |
| 2023 | +34.1% | +18.1% |
| 2024 | +14.1% | +17.3% |
| 2025 | +47.0% | +19.3% |
| 2026 | +44.2% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ESE and XLI good diversifiers for each other?
Only partially. A correlation of 0.56 means ESE 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 ESE and XLI?
Using weekly returns as of 2026-08-27: 0.56 over 3 years, with 0.56 over the last year and 0.62 over 5 years.
Is XLI a good diversifier for ESE?
Only partially. A correlation of 0.56 means ESE 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 0.56 mean?
A reading of 0.56 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/ese-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ese-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ESE correlations · XLI correlations
