HON vs XLI: Correlation
Honeywell Technologies (HON) and Industrial Select Sector SPDR Fund (XLI) show a moderate relationship: their 3-year correlation of weekly returns is 0.55.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HON and XLI?
Over the past 3 years, HON and XLI moved with a correlation of 0.55, which is moderate. Little has changed lately, as the 1-year reading of 0.51 lands near the 3-year figure. Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 201.9 %².
By 3-year correlation, XLI places #8 of the 32 assets tracked against HON. Correlation aside, the last 12 months split them widely, with XLI ahead by 15.6 points (+2.7% versus +18.3%). Across three years, the rolling one-year figure varied moderately, from 0.39 to 0.79.
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.
HON vs XLI: side by side
| HON (Honeywell Technologies) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +2.7% | +18.3% |
| 5-year return | +6.6% | +84.0% |
| Volatility (ann.) | 23.2% | 15.7% |
| Beta vs S&P 500 | 0.74 | 0.89 |
| Max drawdown (3Y) | -22.1% | -18.5% |
| Market cap | $69.9B | – |
| P/E (trailing) | 8.5 | – |
| Dividend yield | 4.26% | 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 | HON | XLI |
|---|---|---|
| 2022 | +4.9% | -5.6% |
| 2023 | +0.0% | +18.1% |
| 2024 | +10.0% | +17.3% |
| 2025 | -6.4% | +19.3% |
| 2026 | +9.2% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 1.23% of XLI is HON itself, so the fund partly moves with the stock by construction.
Are HON and XLI good diversifiers for each other?
Somewhat, no more. With 0.55 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between HON and XLI?
As of 2026-08-27, the correlation of weekly returns between HON and XLI is 0.55 over 3 years, 0.51 over 1 year and 0.65 over 5 years.
Is XLI a good diversifier for HON?
Somewhat, no more. With 0.55 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.55 mean?
On the −1 to +1 scale, 0.55 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/hon-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/hon-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: HON correlations · XLI correlations
