MMM vs XLI: Correlation
How closely do 3M (MMM) and Industrial Select Sector SPDR Fund (XLI) trade together? Their weekly returns over three years give a correlation of 0.57, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MMM and XLI?
Across a 3-year window, the weekly returns of MMM and XLI correlate at 0.57, moderate. The relationship has been stable: the 1-year correlation (0.61) sits close to the 3-year figure. Stretching to 5 years gives 0.64, with an annualized covariance of 268.7 %².
By 3-year correlation, XLI places #9 of the 34 assets tracked against MMM. Twelve-month performance is nearly a tie, at +16.4% for MMM and +18.3% for XLI. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.28 to 0.79. Note the risk asymmetry: MMM runs 1.9 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
MMM vs XLI: side by side
| MMM (3M) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +16.4% | +18.3% |
| 5-year return | +29.9% | +84.0% |
| Volatility (ann.) | 29.8% | 15.7% |
| Beta vs S&P 500 | 0.89 | 0.89 |
| Max drawdown (3Y) | -20.7% | -18.5% |
| Market cap | $92.2B | – |
| P/E (trailing) | 31.9 | – |
| Dividend yield | 1.68% | 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 | MMM | XLI |
|---|---|---|
| 2022 | -29.6% | -5.6% |
| 2023 | -3.3% | +18.1% |
| 2024 | +46.1% | +17.3% |
| 2025 | +26.4% | +19.3% |
| 2026 | +13.3% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
MMM represents 1.66% of XLI's portfolio, so part of any move in XLI is MMM itself, and the correlation between them is partly mechanical.
Are MMM and XLI good diversifiers for each other?
To a limited degree. At 0.57 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 MMM and XLI?
As of 2026-08-27, the correlation of weekly returns between MMM and XLI is 0.57 over 3 years, 0.61 over 1 year and 0.64 over 5 years.
Is XLI a good diversifier for MMM?
To a limited degree. At 0.57 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 0.57 mean?
On the −1 to +1 scale, 0.57 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mmm-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mmm-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MMM correlations · XLI correlations
