JPM vs XLF: Correlation
Measured on weekly returns over the past three years, JPMorgan Chase (JPM) and Financial Select Sector SPDR Fund (XLF) carry a correlation of 0.87, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are JPM and XLF?
On 3 years of weekly data the JPM/XLF correlation comes out at 0.87, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.78 lands near the 3-year figure. The 5-year figure is 0.87, and annualized covariance runs at 324.8 %².
In JPM's tracked universe of 36 assets, XLF sits right near the top at #1. Over the last 12 months JPM came out ahead by 11.3 percentage points (+20.6% against +9.3%). Stability stands out here, with the rolling one-year correlation confined to 0.78 through 0.91.
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.
JPM vs XLF: side by side
| JPM (JPMorgan Chase) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.6% | +9.3% |
| 5-year return | +150.2% | +64.2% |
| Volatility (ann.) | 23.2% | 16.2% |
| Beta vs S&P 500 | 1.01 | 0.84 |
| Max drawdown (3Y) | -24.4% | -15.5% |
| Market cap | $941.6B | – |
| P/E (trailing) | 15.2 | – |
| Dividend yield | 1.68% | 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 | JPM | XLF |
|---|---|---|
| 2022 | -12.6% | -10.6% |
| 2023 | +30.6% | +12.0% |
| 2024 | +44.3% | +30.6% |
| 2025 | +37.3% | +14.9% |
| 2026 | +11.5% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 11.61% of XLF is JPM itself, so the fund partly moves with the stock by construction.
Are JPM and XLF good diversifiers for each other?
Not really. At 0.87, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between JPM and XLF?
As of 2026-08-27, the correlation of weekly returns between JPM and XLF is 0.87 over 3 years, 0.78 over 1 year and 0.87 over 5 years.
Is XLF a good diversifier for JPM?
Not really. At 0.87, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.87 mean?
A reading of 0.87 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: JPM correlations · XLF correlations
