JKHY vs XLF: Correlation
How closely do Jack Henry & Associates (JKHY) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.26, which is weak.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are JKHY and XLF?
On 3 years of weekly data the JKHY/XLF correlation comes out at 0.26, weak. Little has changed lately, as the 1-year reading of 0.33 lands near the 3-year figure. The 5-year figure is 0.39, and annualized covariance runs at 97.4 %².
Within JKHY's tracked universe of 33 assets, XLF comes in at #19 by 3-year correlation. Twelve-month performance is nearly a tie, at +5.8% for JKHY and +9.3% for XLF. This link changes with the market regime, having swung between -0.01 and 0.70 on a rolling one-year basis.
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.
JKHY vs XLF: side by side
| JKHY (Jack Henry & Associates) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +5.8% | +9.3% |
| 5-year return | +2.6% | +64.2% |
| Volatility (ann.) | 23.0% | 16.2% |
| Beta vs S&P 500 | 0.21 | 0.84 |
| Max drawdown (3Y) | -35.4% | -15.5% |
| Market cap | $12.1B | – |
| P/E (trailing) | 24.7 | – |
| Dividend yield | 1.38% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | Financials | 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 | JKHY | XLF |
|---|---|---|
| 2022 | +6.2% | -10.6% |
| 2023 | -5.7% | +12.0% |
| 2024 | +8.7% | +30.6% |
| 2025 | +5.5% | +14.9% |
| 2026 | -6.3% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
JKHY represents 0.15% of XLF's portfolio, so part of any move in XLF is JKHY itself, and the correlation between them is partly mechanical.
Are JKHY and XLF good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.26 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between JKHY and XLF?
As of 2026-08-27, the correlation of weekly returns between JKHY and XLF is 0.26 over 3 years, 0.33 over 1 year and 0.39 over 5 years.
Is XLF a good diversifier for JKHY?
Yes, to a useful degree: a correlation of 0.26 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.26 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: JKHY correlations · XLF correlations
