J vs XLF: Correlation
Measured on weekly returns over the past three years, Jacobs Solutions (J) and Financial Select Sector SPDR Fund (XLF) carry a correlation of 0.48, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are J and XLF?
On 3 years of weekly data the J/XLF correlation comes out at 0.48, moderate. Recent behaviour matches the longer record: 0.51 over 1 year against 0.48 over 3. The 5-year figure is 0.55, and annualized covariance runs at 199.5 %².
By 3-year correlation, XLF places #15 of the 34 assets tracked against J. On 12-month performance XLF holds a 6.7-point edge, +2.6% against +9.3%. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.18 to 0.69. Note the risk asymmetry: J runs 1.6 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.
J vs XLF: side by side
| J (Jacobs Solutions) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +2.6% | +9.3% |
| 5-year return | +40.5% | +64.2% |
| Volatility (ann.) | 25.7% | 16.2% |
| Beta vs S&P 500 | 0.77 | 0.84 |
| Max drawdown (3Y) | -34.4% | -15.5% |
| Market cap | $17.6B | – |
| P/E (trailing) | 49.9 | – |
| Dividend yield | 0.90% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | Industrials | 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 | J | XLF |
|---|---|---|
| 2022 | -13.1% | -10.6% |
| 2023 | +9.0% | +12.0% |
| 2024 | +24.2% | +30.6% |
| 2025 | +1.1% | +14.9% |
| 2026 | +14.6% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are J and XLF good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.48 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between J and XLF?
Using weekly returns as of 2026-08-27: 0.48 over 3 years, with 0.51 over the last year and 0.55 over 5 years.
Is XLF a good diversifier for J?
Yes, to a useful degree: a correlation of 0.48 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.48 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.
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Related comparisons
Hubs: J correlations · XLF correlations
