MTB vs XLF: Correlation
Measured on weekly returns over the past three years, M&T Bank (MTB) and Financial Select Sector SPDR Fund (XLF) carry a correlation of 0.75, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MTB and XLF?
Across a 3-year window, the weekly returns of MTB and XLF correlate at 0.75, strong. The past 12 months show a weaker link (0.63) than the 3-year average (0.75). Stretching to 5 years gives 0.70, with an annualized covariance of 320.5 %².
Within MTB's tracked universe of 35 assets, XLF comes in at #18 by 3-year correlation. The trailing year gives MTB the advantage: +21.7% versus +9.3%, a 12.4-point spread. The rolling one-year correlation moved between 0.56 and 0.85 over the past three years, a moderate range. Risk is not evenly split, since MTB carries 1.6 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.
MTB vs XLF: side by side
| MTB (M&T Bank) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.7% | +9.3% |
| 5-year return | +101.3% | +64.2% |
| Volatility (ann.) | 26.5% | 16.2% |
| Beta vs S&P 500 | 0.83 | 0.84 |
| Max drawdown (3Y) | -28.5% | -15.5% |
| Market cap | $34.5B | – |
| P/E (trailing) | 12.8 | – |
| Dividend yield | 2.48% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | Financials | Sector ETF |
XLF is a Financial fund from State Street Investment Management: $57.9B under management, 77 holdings, a 0.08% expense ratio, a 1.42% trailing dividend yield.
Year-by-year returns
| Year | MTB | XLF |
|---|---|---|
| 2022 | -2.9% | -10.6% |
| 2023 | -1.7% | +12.0% |
| 2024 | +41.7% | +30.6% |
| 2025 | +10.4% | +14.9% |
| 2026 | +20.1% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.43% of XLF is MTB itself, so the fund partly moves with the stock by construction.
Are MTB and XLF good diversifiers for each other?
To a limited degree. At 0.75 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 MTB and XLF?
As of 2026-08-27, the correlation of weekly returns between MTB and XLF is 0.75 over 3 years, 0.63 over 1 year and 0.70 over 5 years.
Is XLF a good diversifier for MTB?
To a limited degree. At 0.75 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 0.75 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.
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Related comparisons
Hubs: MTB correlations · XLF correlations
