HOOD vs XLF: Correlation
How closely do Robinhood Markets (HOOD) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.43, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HOOD and XLF?
Over the past 3 years, HOOD and XLF moved with a correlation of 0.43, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.29 versus 0.43 over 3 years. Over 5 years the correlation is 0.43, and the annualized covariance of weekly returns is 494.8 %².
Among the 39 assets we track against HOOD, XLF ranks #25 by 3-year correlation. Their 12-month results are close: +6.6% for HOOD against +9.3% for XLF. On a rolling one-year basis the correlation drifted between 0.20 and 0.65, a moderate band. Risk is not evenly split, since HOOD carries 4.4 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.
HOOD vs XLF: side by side
| HOOD (Robinhood Markets) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +6.6% | +9.3% |
| 5-year return | +151.5% | +64.2% |
| Volatility (ann.) | 71.4% | 16.2% |
| Beta vs S&P 500 | 2.88 | 0.84 |
| Max drawdown (3Y) | -57.3% | -15.5% |
| Market cap | $98.7B | – |
| P/E (trailing) | 48.1 | – |
| Dividend yield | 0.00% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | Financials | Sector ETF |
XLF is a Financial fund from State Street Investment Management: $57.9B under management, 77 holdings, a 0.08% expense ratio, a 1.42% trailing dividend yield.
Year-by-year returns
| Year | HOOD | XLF |
|---|---|---|
| 2022 | -54.2% | -10.6% |
| 2023 | +56.5% | +12.0% |
| 2024 | +192.5% | +30.6% |
| 2025 | +203.5% | +14.9% |
| 2026 | -3.0% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLF holds HOOD at a 1.04% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are HOOD and XLF good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.43 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between HOOD and XLF?
The HOOD/XLF correlation stands at 0.43 on a 3-year window (1 year: 0.29, 5 years: 0.43), computed from weekly returns as of 2026-08-27.
Is XLF a good diversifier for HOOD?
Yes, to a useful degree: a correlation of 0.43 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.43 mean?
On the −1 to +1 scale, 0.43 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.
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Related comparisons
Hubs: HOOD correlations · XLF correlations
