KKR vs XLF: Correlation
Measured on weekly returns over the past three years, KKR & Co. (KKR) and Financial Select Sector SPDR Fund (XLF) carry a correlation of 0.71, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KKR and XLF?
Across a 3-year window, the weekly returns of KKR and XLF correlate at 0.71, strong. The link has loosened recently: the 1-year correlation (0.52) runs below the 3-year figure (0.71). Stretching to 5 years gives 0.71, with an annualized covariance of 435.5 %².
Within KKR's tracked universe of 37 assets, XLF comes in at #9 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLF outperformed by 30.9 percentage points (-21.6% for KKR against +9.3% for XLF). On a rolling one-year basis the correlation drifted between 0.52 and 0.88, a moderate band. One caveat on sizing: KKR is 2.3 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
KKR vs XLF: side by side
| KKR (KKR & Co.) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -21.6% | +9.3% |
| 5-year return | +77.3% | +64.2% |
| Volatility (ann.) | 37.8% | 16.2% |
| Beta vs S&P 500 | 1.76 | 0.84 |
| Max drawdown (3Y) | -49.4% | -15.5% |
| Market cap | $101.0B | – |
| P/E (trailing) | 34.7 | – |
| Dividend yield | 0.70% | 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 | KKR | XLF |
|---|---|---|
| 2022 | -37.0% | -10.6% |
| 2023 | +80.5% | +12.0% |
| 2024 | +79.6% | +30.6% |
| 2025 | -13.3% | +14.9% |
| 2026 | -13.8% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLF holds KKR at a 0.91% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are KKR and XLF good diversifiers for each other?
Only partially. A correlation of 0.71 means KKR and XLF share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between KKR and XLF?
As of 2026-08-27, the correlation of weekly returns between KKR and XLF is 0.71 over 3 years, 0.52 over 1 year and 0.71 over 5 years.
Is XLF a good diversifier for KKR?
Only partially. A correlation of 0.71 means KKR and XLF share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.71 mean?
On the −1 to +1 scale, 0.71 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: KKR correlations · XLF correlations
