J vs XLI: Correlation
Measured on weekly returns over the past three years, Jacobs Solutions (J) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of 0.49, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are J and XLI?
Across a 3-year window, the weekly returns of J and XLI correlate at 0.49, moderate. The past 12 months show a weaker link (0.35) than the 3-year average (0.49). Stretching to 5 years gives 0.60, with an annualized covariance of 197.7 %².
Among the 34 assets we track against J, XLI ranks #11 by 3-year correlation. The last year tells two different stories: XLI led by 15.7 percentage points, +2.6% for J against +18.3% for XLI. The rolling one-year correlation moved between 0.32 and 0.79 over the past three years, a moderate range. 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 XLI: side by side
| J (Jacobs Solutions) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +2.6% | +18.3% |
| 5-year return | +40.5% | +84.0% |
| Volatility (ann.) | 25.7% | 15.7% |
| Beta vs S&P 500 | 0.77 | 0.89 |
| Max drawdown (3Y) | -34.4% | -18.5% |
| Market cap | $17.6B | – |
| P/E (trailing) | 49.9 | – |
| Dividend yield | 0.90% | 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 | J | XLI |
|---|---|---|
| 2022 | -13.1% | -5.6% |
| 2023 | +9.0% | +18.1% |
| 2024 | +24.2% | +17.3% |
| 2025 | +1.1% | +19.3% |
| 2026 | +14.6% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.32% of XLI is J itself, so the fund partly moves with the stock by construction.
Are J and XLI good diversifiers for each other?
A fair diversifier. At 0.49, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between J and XLI?
Using weekly returns as of 2026-08-27: 0.49 over 3 years, with 0.35 over the last year and 0.60 over 5 years.
Is XLI a good diversifier for J?
A fair diversifier. At 0.49, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.49 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/j-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/j-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: J correlations · XLI correlations
