KEY vs XLF: Correlation
How closely do KeyCorp (KEY) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.80, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KEY and XLF?
Over the past 3 years, KEY and XLF moved with a correlation of 0.80, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.71) sits close to the 3-year figure. Over 5 years the correlation is 0.79, and the annualized covariance of weekly returns is 415.3 %².
Among the 59 assets we track against KEY, XLF ranks #18 by 3-year correlation. The trailing year gives KEY the advantage: +18.4% versus +9.3%, a 9.1-point spread. The link looks structural: the rolling one-year correlation barely moved, holding between 0.69 and 0.90. Note the risk asymmetry: KEY runs 2.0 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.
KEY vs XLF: side by side
| KEY (KeyCorp) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +18.4% | +9.3% |
| 5-year return | +38.0% | +64.2% |
| Volatility (ann.) | 32.1% | 16.2% |
| Beta vs S&P 500 | 1.25 | 0.84 |
| Max drawdown (3Y) | -32.2% | -15.5% |
| Market cap | $23.5B | – |
| P/E (trailing) | 13.0 | – |
| Dividend yield | 3.71% | 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 | KEY | XLF |
|---|---|---|
| 2022 | -21.7% | -10.6% |
| 2023 | -11.5% | +12.0% |
| 2024 | +25.3% | +30.6% |
| 2025 | +26.2% | +14.9% |
| 2026 | +8.8% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
KEY represents 0.25% of XLF's portfolio, so part of any move in XLF is KEY itself, and the correlation between them is partly mechanical.
Are KEY and XLF good diversifiers for each other?
No: a correlation of 0.80 means KEY and XLF tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between KEY and XLF?
As of 2026-08-27, the correlation of weekly returns between KEY and XLF is 0.80 over 3 years, 0.71 over 1 year and 0.79 over 5 years.
Is XLF a good diversifier for KEY?
No: a correlation of 0.80 means KEY and XLF tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.80 mean?
On the −1 to +1 scale, 0.80 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.
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Related comparisons
Hubs: KEY correlations · XLF correlations
