HWM vs XLI: Correlation
Measured on weekly returns over the past three years, Howmet Aerospace (HWM) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of 0.65, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HWM and XLI?
Across a 3-year window, the weekly returns of HWM and XLI correlate at 0.65, strong. Recent behaviour matches the longer record: 0.61 over 1 year against 0.65 over 3. Stretching to 5 years gives 0.68, with an annualized covariance of 329.8 %².
XLI is one of the assets that tracks HWM most closely: it ranks #1 out of the 35 assets we track against HWM. Their recent paths diverged sharply: over the last 12 months HWM outperformed by 34.4 percentage points (+52.7% for HWM against +18.3% for XLI). The relationship is regime-dependent: the rolling one-year correlation swung between 0.33 and 0.84 over the past three years, so this pair behaves very differently depending on the market environment. Risk is not evenly split, since HWM carries 2.0 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.
HWM vs XLI: side by side
| HWM (Howmet Aerospace) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +52.7% | +18.3% |
| 5-year return | +754.4% | +84.0% |
| Volatility (ann.) | 32.1% | 15.7% |
| Beta vs S&P 500 | 1.24 | 0.89 |
| Max drawdown (3Y) | -19.4% | -18.5% |
| Market cap | $106.7B | – |
| P/E (trailing) | 58.2 | – |
| Dividend yield | 0.18% | 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 | HWM | XLI |
|---|---|---|
| 2022 | +24.2% | -5.6% |
| 2023 | +37.8% | +18.1% |
| 2024 | +102.7% | +17.3% |
| 2025 | +88.0% | +19.3% |
| 2026 | +30.7% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 1.9% of XLI is HWM itself, so the fund partly moves with the stock by construction.
Are HWM and XLI good diversifiers for each other?
Only partially. A correlation of 0.65 means HWM 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 HWM and XLI?
As of 2026-08-27, the correlation of weekly returns between HWM and XLI is 0.65 over 3 years, 0.61 over 1 year and 0.68 over 5 years.
Is XLI a good diversifier for HWM?
Only partially. A correlation of 0.65 means HWM 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 0.65 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/hwm-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/hwm-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: HWM correlations · XLI correlations
