LMT vs XLI: Correlation
How closely do Lockheed Martin (LMT) and Industrial Select Sector SPDR Fund (XLI) trade together? Their weekly returns over three years give a correlation of 0.28, which is weak.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LMT and XLI?
Over the past 3 years, LMT and XLI moved with a correlation of 0.28, which is weak. The relationship has been stable: the 1-year correlation (0.29) sits close to the 3-year figure. Over 5 years the correlation is 0.34, and the annualized covariance of weekly returns is 115.6 %².
By 3-year correlation, XLI places #16 of the 29 assets tracked against LMT. The trailing year gives LMT the advantage: +27.9% versus +18.3%, a 9.6-point spread. Across three years, the rolling one-year figure varied moderately, from 0.04 to 0.45. One caveat on sizing: LMT is 1.7 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.
LMT vs XLI: side by side
| LMT (Lockheed Martin) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +27.9% | +18.3% |
| 5-year return | +78.9% | +84.0% |
| Volatility (ann.) | 26.0% | 15.7% |
| Beta vs S&P 500 | 0.20 | 0.89 |
| Max drawdown (3Y) | -31.8% | -18.5% |
| Market cap | $130.6B | – |
| P/E (trailing) | 20.9 | – |
| Dividend yield | 2.41% | 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 | LMT | XLI |
|---|---|---|
| 2022 | +40.5% | -5.6% |
| 2023 | -4.3% | +18.1% |
| 2024 | +10.0% | +17.3% |
| 2025 | +2.5% | +19.3% |
| 2026 | +18.4% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
LMT represents 2.02% of XLI's portfolio, so part of any move in XLI is LMT itself, and the correlation between them is partly mechanical.
Are LMT and XLI good diversifiers for each other?
Reasonably. At 0.28, LMT and XLI keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between LMT and XLI?
The LMT/XLI correlation stands at 0.28 on a 3-year window (1 year: 0.29, 5 years: 0.34), computed from weekly returns as of 2026-08-27.
Is XLI a good diversifier for LMT?
Reasonably. At 0.28, LMT and XLI keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.28 mean?
A reading of 0.28 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/lmt-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/lmt-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: LMT correlations · XLI correlations
