ETN vs XLI: Correlation
Measured on weekly returns over the past three years, Eaton Corporation (ETN) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of 0.71, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ETN and XLI?
Across a 3-year window, the weekly returns of ETN and XLI correlate at 0.71, strong. Recent behaviour matches the longer record: 0.61 over 1 year against 0.71 over 3. Stretching to 5 years gives 0.71, with an annualized covariance of 337.0 %².
Within ETN's tracked universe of 44 assets, XLI comes in at #6 by 3-year correlation. Neither side won the trailing year by much: +19.7% against +18.3%. Across three years, the rolling one-year figure varied moderately, from 0.55 to 0.80. One caveat on sizing: ETN is 1.9 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.
ETN vs XLI: side by side
| ETN (Eaton Corporation) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +19.7% | +18.3% |
| 5-year return | +164.1% | +84.0% |
| Volatility (ann.) | 30.2% | 15.7% |
| Beta vs S&P 500 | 1.33 | 0.89 |
| Max drawdown (3Y) | -34.5% | -18.5% |
| Market cap | $161.6B | – |
| P/E (trailing) | 42.4 | – |
| 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 | ETN | XLI |
|---|---|---|
| 2022 | -7.2% | -5.6% |
| 2023 | +56.2% | +18.1% |
| 2024 | +39.5% | +17.3% |
| 2025 | -2.8% | +19.3% |
| 2026 | +31.7% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 2.87% of XLI is ETN itself, so the fund partly moves with the stock by construction.
Are ETN and XLI good diversifiers for each other?
To a limited degree. At 0.71 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between ETN and XLI?
As of 2026-08-27, the correlation of weekly returns between ETN and XLI is 0.71 over 3 years, 0.61 over 1 year and 0.71 over 5 years.
Is XLI a good diversifier for ETN?
To a limited degree. At 0.71 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.71 mean?
A reading of 0.71 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/etn-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/etn-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ETN correlations · XLI correlations
