L vs XLF: Correlation
How closely do Loews Corporation (L) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.63, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are L and XLF?
Over the past 3 years, L and XLF moved with a correlation of 0.63, which is strong. The past 12 months show a weaker link (0.44) than the 3-year average (0.63). Over 5 years the correlation is 0.71, and the annualized covariance of weekly returns is 170.1 %².
Within L's tracked universe of 54 assets, XLF comes in at #18 by 3-year correlation. Neither side won the trailing year by much: +14.2% against +9.3%. The rolling one-year correlation moved between 0.45 and 0.80 over the past three years, a moderate range.
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.
L vs XLF: side by side
| L (Loews Corporation) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +14.2% | +9.3% |
| 5-year return | +100.1% | +64.2% |
| Volatility (ann.) | 16.6% | 16.2% |
| Beta vs S&P 500 | 0.33 | 0.84 |
| Max drawdown (3Y) | -12.2% | -15.5% |
| Market cap | $22.5B | – |
| P/E (trailing) | 13.5 | – |
| Dividend yield | 0.23% | 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 | L | XLF |
|---|---|---|
| 2022 | +1.4% | -10.6% |
| 2023 | +19.8% | +12.0% |
| 2024 | +22.1% | +30.6% |
| 2025 | +24.7% | +14.9% |
| 2026 | +4.5% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
L represents 0.23% of XLF's portfolio, so part of any move in XLF is L itself, and the correlation between them is partly mechanical.
Are L and XLF good diversifiers for each other?
Only partially. A correlation of 0.63 means L 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 L and XLF?
Using weekly returns as of 2026-08-27: 0.63 over 3 years, with 0.44 over the last year and 0.71 over 5 years.
Is XLF a good diversifier for L?
Only partially. A correlation of 0.63 means L 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 0.63 mean?
A reading of 0.63 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: L correlations · XLF correlations
