ITT vs XLI: Correlation
ITT Inc. (ITT) and Industrial Select Sector SPDR Fund (XLI) show a very strong relationship: their 3-year correlation of weekly returns is 0.81.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ITT and XLI?
On 3 years of weekly data the ITT/XLI correlation comes out at 0.81, very strong, meaning they move nearly in lockstep. The link has loosened recently: the 1-year correlation (0.69) runs below the 3-year figure (0.81). The 5-year figure is 0.82, and annualized covariance runs at 348.2 %².
Few assets follow ITT as closely as XLI, which ranks #1 of 38 tracked partners. Their 12-month results are close: +20.8% for ITT against +18.3% for XLI. Note the risk asymmetry: ITT runs 1.7 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
ITT vs XLI: side by side
| ITT (ITT Inc.) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.8% | +18.3% |
| 5-year return | +124.4% | +84.0% |
| Volatility (ann.) | 27.4% | 15.7% |
| Beta vs S&P 500 | 1.33 | 0.89 |
| Max drawdown (3Y) | -29.1% | -18.5% |
| Market cap | – | – |
| P/E (trailing) | 40.9 | – |
| Dividend yield | 0.70% | 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 | ITT | XLI |
|---|---|---|
| 2022 | -19.5% | -5.6% |
| 2023 | +48.9% | +18.1% |
| 2024 | +20.9% | +17.3% |
| 2025 | +22.5% | +19.3% |
| 2026 | +20.3% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ITT and XLI good diversifiers for each other?
No: a correlation of 0.81 means ITT and XLI tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between ITT and XLI?
The ITT/XLI correlation stands at 0.81 on a 3-year window (1 year: 0.69, 5 years: 0.82), computed from weekly returns as of 2026-08-27.
Is XLI a good diversifier for ITT?
No: a correlation of 0.81 means ITT and XLI tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.81 mean?
On the −1 to +1 scale, 0.81 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/itt-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/itt-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ITT correlations · XLI correlations
