IA vs XLI: Correlation
Measured on weekly returns over the past three years, Innovative Solutions and Support, Inc. (IA) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of 0.34, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IA and XLI?
Across a 3-year window, the weekly returns of IA and XLI correlate at 0.34, moderate. The relationship has been stable: the 1-year correlation (0.27) sits close to the 3-year figure. Stretching to 5 years gives 0.25, with an annualized covariance of 354.8 %².
By 3-year correlation, XLI places #4 of the 10 assets tracked against IA. Their recent paths diverged sharply: over the last 12 months IA outperformed by 39.4 percentage points (+57.7% for IA against +18.3% for XLI). One caveat on sizing: IA is 4.3 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.
IA vs XLI: side by side
| IA (Innovative Solutions and Support, Inc.) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +57.7% | +18.3% |
| 5-year return | +202.0% | +84.0% |
| Volatility (ann.) | 67.2% | 15.7% |
| Beta vs S&P 500 | 1.21 | 0.89 |
| Max drawdown (3Y) | -57.8% | -18.5% |
| Market cap | $0.4B | – |
| P/E (trailing) | 20.4 | – |
| 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 | IA | XLI |
|---|---|---|
| 2022 | +25.3% | -5.6% |
| 2023 | +3.8% | +18.1% |
| 2024 | +0.1% | +17.3% |
| 2025 | +121.8% | +19.3% |
| 2026 | +11.8% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IA and XLI good diversifiers for each other?
Reasonably. At 0.34, IA and XLI keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between IA and XLI?
Using weekly returns as of 2026-08-27: 0.34 over 3 years, with 0.27 over the last year and 0.25 over 5 years.
Is XLI a good diversifier for IA?
Reasonably. At 0.34, IA and XLI keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.34 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/ia-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ia-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IA correlations · XLI correlations
