LHX vs XLI: Correlation
How closely do L3Harris (LHX) and Industrial Select Sector SPDR Fund (XLI) trade together? Their weekly returns over three years give a correlation of 0.51, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LHX and XLI?
On 3 years of weekly data the LHX/XLI correlation comes out at 0.51, moderate. Recent behaviour matches the longer record: 0.47 over 1 year against 0.51 over 3. The 5-year figure is 0.53, and annualized covariance runs at 184.6 %².
Within LHX's tracked universe of 30 assets, XLI comes in at #9 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLI outperformed by 22.1 percentage points (-3.8% for LHX against +18.3% for XLI). Across three years, the rolling one-year figure varied moderately, from 0.24 to 0.68.
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.
LHX vs XLI: side by side
| LHX (L3Harris) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -3.8% | +18.3% |
| 5-year return | +24.4% | +84.0% |
| Volatility (ann.) | 23.0% | 15.7% |
| Beta vs S&P 500 | 0.51 | 0.89 |
| Max drawdown (3Y) | -30.3% | -18.5% |
| Market cap | $48.8B | – |
| P/E (trailing) | 26.6 | – |
| Dividend yield | 1.09% | 1.15% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $32.9B |
| Sector / category | Industrials | 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 | LHX | XLI |
|---|---|---|
| 2022 | -0.5% | -5.6% |
| 2023 | +3.7% | +18.1% |
| 2024 | +1.9% | +17.3% |
| 2025 | +42.3% | +19.3% |
| 2026 | -10.1% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLI holds LHX at a 0.86% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are LHX and XLI good diversifiers for each other?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between LHX and XLI?
Using weekly returns as of 2026-08-27: 0.51 over 3 years, with 0.47 over the last year and 0.53 over 5 years.
Is XLI a good diversifier for LHX?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.51 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/lhx-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/lhx-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: LHX correlations · XLI correlations
