LUV vs XLI: Correlation
Southwest Airlines (LUV) and Industrial Select Sector SPDR Fund (XLI) show a moderate relationship: their 3-year correlation of weekly returns is 0.47.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LUV and XLI?
Across a 3-year window, the weekly returns of LUV and XLI correlate at 0.47, moderate. The relationship has been stable: the 1-year correlation (0.55) sits close to the 3-year figure. Stretching to 5 years gives 0.50, with an annualized covariance of 302.5 %².
Among the 32 assets we track against LUV, XLI ranks #18 by 3-year correlation. Their 12-month results are close: +22.0% for LUV against +18.3% for XLI. The relationship is regime-dependent: the rolling one-year correlation swung between 0.08 and 0.71 over the past three years, so this pair behaves very differently depending on the market environment. Risk is not evenly split, since LUV carries 2.6 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.
LUV vs XLI: side by side
| LUV (Southwest Airlines) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.0% | +18.3% |
| 5-year return | -12.3% | +84.0% |
| Volatility (ann.) | 40.5% | 15.7% |
| Beta vs S&P 500 | 1.11 | 0.89 |
| Max drawdown (3Y) | -33.5% | -18.5% |
| Market cap | $19.5B | – |
| P/E (trailing) | 25.5 | – |
| Dividend yield | 1.77% | 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 | LUV | XLI |
|---|---|---|
| 2022 | -21.4% | -5.6% |
| 2023 | -11.8% | +18.1% |
| 2024 | +19.1% | +17.3% |
| 2025 | +25.6% | +19.3% |
| 2026 | -3.0% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.35% of XLI is LUV itself, so the fund partly moves with the stock by construction.
Are LUV and XLI good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.47 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between LUV and XLI?
The LUV/XLI correlation stands at 0.47 on a 3-year window (1 year: 0.55, 5 years: 0.50), computed from weekly returns as of 2026-08-27.
Is XLI a good diversifier for LUV?
Yes, to a useful degree: a correlation of 0.47 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.47 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/luv-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/luv-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: LUV correlations · XLI correlations
