NDSN vs XLI: Correlation
Nordson Corporation (NDSN) and Industrial Select Sector SPDR Fund (XLI) show a strong relationship: their 3-year correlation of weekly returns is 0.69.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NDSN and XLI?
Across a 3-year window, the weekly returns of NDSN and XLI correlate at 0.69, strong. The past 12 months show a weaker link (0.48) than the 3-year average (0.69). Stretching to 5 years gives 0.73, with an annualized covariance of 268.5 %².
Within NDSN's tracked universe of 39 assets, XLI comes in at #13 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months NDSN outperformed by 30.2 percentage points (+48.5% for NDSN against +18.3% for XLI). The rolling one-year correlation stayed in a tight band between 0.64 and 0.86 over the past three years, which points to a structural rather than episodic relationship. One caveat on sizing: NDSN is 1.6 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.
NDSN vs XLI: side by side
| NDSN (Nordson Corporation) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +48.5% | +18.3% |
| 5-year return | +46.5% | +84.0% |
| Volatility (ann.) | 24.7% | 15.7% |
| Beta vs S&P 500 | 0.97 | 0.89 |
| Max drawdown (3Y) | -39.1% | -18.5% |
| Market cap | $18.4B | – |
| P/E (trailing) | 33.5 | – |
| Dividend yield | 0.98% | 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 | NDSN | XLI |
|---|---|---|
| 2022 | -5.9% | -5.6% |
| 2023 | +12.4% | +18.1% |
| 2024 | -20.1% | +17.3% |
| 2025 | +17.0% | +19.3% |
| 2026 | +38.4% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.31% of XLI is NDSN itself, so the fund partly moves with the stock by construction.
Are NDSN and XLI good diversifiers for each other?
Only partially. A correlation of 0.69 means NDSN and XLI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between NDSN and XLI?
The NDSN/XLI correlation stands at 0.69 on a 3-year window (1 year: 0.48, 5 years: 0.73), computed from weekly returns as of 2026-08-27.
Is XLI a good diversifier for NDSN?
Only partially. A correlation of 0.69 means NDSN and XLI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.69 mean?
A reading of 0.69 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/ndsn-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ndsn-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: NDSN correlations · XLI correlations
