IR vs XLI: Correlation
Measured on weekly returns over the past three years, Ingersoll Rand (IR) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of 0.75, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IR and XLI?
On 3 years of weekly data the IR/XLI correlation comes out at 0.75, strong. The relationship has been stable: the 1-year correlation (0.69) sits close to the 3-year figure. The 5-year figure is 0.74, and annualized covariance runs at 352.5 %².
Few assets follow IR as closely as XLI, which ranks #2 of 61 tracked partners. Their recent paths diverged sharply: over the last 12 months XLI outperformed by 20.3 percentage points (-2.0% for IR against +18.3% for XLI). The link looks structural: the rolling one-year correlation barely moved, holding between 0.69 and 0.84. Risk is not evenly split, since IR carries 1.9 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.
IR vs XLI: side by side
| IR (Ingersoll Rand) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -2.0% | +18.3% |
| 5-year return | +49.2% | +84.0% |
| Volatility (ann.) | 29.8% | 15.7% |
| Beta vs S&P 500 | 1.17 | 0.89 |
| Max drawdown (3Y) | -36.6% | -18.5% |
| Market cap | $30.6B | – |
| P/E (trailing) | 32.6 | – |
| Dividend yield | 0.15% | 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 | IR | XLI |
|---|---|---|
| 2022 | -15.4% | -5.6% |
| 2023 | +48.2% | +18.1% |
| 2024 | +17.1% | +17.3% |
| 2025 | -12.3% | +19.3% |
| 2026 | -0.2% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLI holds IR at a 0.5% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are IR and XLI good diversifiers for each other?
Only partially. A correlation of 0.75 means IR 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 IR and XLI?
Using weekly returns as of 2026-08-27: 0.75 over 3 years, with 0.69 over the last year and 0.74 over 5 years.
Is XLI a good diversifier for IR?
Only partially. A correlation of 0.75 means IR 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 0.75 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/ir-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ir-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IR correlations · XLI correlations
