LII vs XLI: Correlation
How closely do Lennox International (LII) and Industrial Select Sector SPDR Fund (XLI) trade together? Their weekly returns over three years give a correlation of 0.59, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LII and XLI?
On 3 years of weekly data the LII/XLI correlation comes out at 0.59, moderate. The relationship has been stable: the 1-year correlation (0.63) sits close to the 3-year figure. The 5-year figure is 0.64, and annualized covariance runs at 298.0 %².
By 3-year correlation, XLI places #4 of the 37 assets tracked against LII. Their recent paths diverged sharply: over the last 12 months XLI outperformed by 48.6 percentage points (-30.3% for LII against +18.3% for XLI). The rolling one-year correlation stayed in a tight band between 0.50 and 0.71 over the past three years, which points to a structural rather than episodic relationship. Risk is not evenly split, since LII carries 2.0 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.
LII vs XLI: side by side
| LII (Lennox International) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -30.3% | +18.3% |
| 5-year return | +23.7% | +84.0% |
| Volatility (ann.) | 32.0% | 15.7% |
| Beta vs S&P 500 | 0.96 | 0.89 |
| Max drawdown (3Y) | -41.7% | -18.5% |
| Market cap | $13.5B | – |
| P/E (trailing) | 17.5 | – |
| Dividend yield | 1.34% | 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 | LII | XLI |
|---|---|---|
| 2022 | -24.9% | -5.6% |
| 2023 | +89.5% | +18.1% |
| 2024 | +37.3% | +17.3% |
| 2025 | -19.5% | +19.3% |
| 2026 | -19.0% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
LII represents 0.22% of XLI's portfolio, so part of any move in XLI is LII itself, and the correlation between them is partly mechanical.
Are LII and XLI good diversifiers for each other?
Somewhat, no more. With 0.59 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between LII and XLI?
Using weekly returns as of 2026-08-27: 0.59 over 3 years, with 0.63 over the last year and 0.64 over 5 years.
Is XLI a good diversifier for LII?
Somewhat, no more. With 0.59 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.59 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/lii-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/lii-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: LII correlations · XLI correlations
