LECO vs XLI: Correlation
How closely do Lincoln Electric Holdings, Inc. (LECO) and Industrial Select Sector SPDR Fund (XLI) trade together? Their weekly returns over three years give a correlation of 0.68, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LECO and XLI?
On 3 years of weekly data the LECO/XLI correlation comes out at 0.68, strong. Recent behaviour matches the longer record: 0.66 over 1 year against 0.68 over 3. The 5-year figure is 0.72, and annualized covariance runs at 300.0 %².
Within LECO's tracked universe of 18 assets, XLI comes in at #6 by 3-year correlation. Their 12-month results are close: +18.4% for LECO against +18.3% for XLI. Risk is not evenly split, since LECO carries 1.8 times the volatility of the other side.
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.
LECO vs XLI: side by side
| LECO (Lincoln Electric Holdings, Inc.) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +18.4% | +18.3% |
| 5-year return | +120.5% | +84.0% |
| Volatility (ann.) | 27.9% | 15.7% |
| Beta vs S&P 500 | 1.03 | 0.89 |
| Max drawdown (3Y) | -34.3% | -18.5% |
| Market cap | $15.8B | – |
| P/E (trailing) | 29.0 | – |
| Dividend yield | 1.08% | 1.15% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $32.9B |
| Sector / category | US Listed | Sector ETF |
XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Year-by-year returns
| Year | LECO | XLI |
|---|---|---|
| 2022 | +5.4% | -5.6% |
| 2023 | +52.6% | +18.1% |
| 2024 | -12.6% | +17.3% |
| 2025 | +29.6% | +19.3% |
| 2026 | +21.7% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LECO and XLI good diversifiers for each other?
To a limited degree. At 0.68 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between LECO and XLI?
As of 2026-08-27, the correlation of weekly returns between LECO and XLI is 0.68 over 3 years, 0.66 over 1 year and 0.72 over 5 years.
Is XLI a good diversifier for LECO?
To a limited degree. At 0.68 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.68 mean?
A reading of 0.68 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/leco-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/leco-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: LECO correlations · XLI correlations
