GTES vs XLI: Correlation
How closely do Gates Industrial Corporation Ltd. (GTES) and Industrial Select Sector SPDR Fund (XLI) trade together? Their weekly returns over three years give a correlation of 0.66, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are GTES and XLI?
On 3 years of weekly data the GTES/XLI correlation comes out at 0.66, strong. The relationship has been stable: the 1-year correlation (0.58) sits close to the 3-year figure. The 5-year figure is 0.66, and annualized covariance runs at 364.3 %².
Within GTES's tracked universe of 22 assets, XLI comes in at #5 by 3-year correlation. The last year tells two different stories: XLI led by 16.8 percentage points, +1.5% for GTES against +18.3% for XLI. One caveat on sizing: GTES is 2.2 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.
GTES vs XLI: side by side
| GTES (Gates Industrial Corporation Ltd.) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +1.5% | +18.3% |
| 5-year return | +56.6% | +84.0% |
| Volatility (ann.) | 35.0% | 15.7% |
| Beta vs S&P 500 | 1.27 | 0.89 |
| Max drawdown (3Y) | -33.8% | -18.5% |
| Market cap | $6.7B | – |
| P/E (trailing) | 18.8 | – |
| Dividend yield | 0.00% | 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 | GTES | XLI |
|---|---|---|
| 2022 | -28.3% | -5.6% |
| 2023 | +17.6% | +18.1% |
| 2024 | +53.3% | +17.3% |
| 2025 | +4.4% | +19.3% |
| 2026 | +22.9% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are GTES and XLI good diversifiers for each other?
Only partially. A correlation of 0.66 means GTES 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 GTES and XLI?
The GTES/XLI correlation stands at 0.66 on a 3-year window (1 year: 0.58, 5 years: 0.66), computed from weekly returns as of 2026-08-27.
Is XLI a good diversifier for GTES?
Only partially. A correlation of 0.66 means GTES 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 0.66 mean?
A reading of 0.66 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/gtes-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/gtes-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: GTES correlations · XLI correlations
