NOC vs XLI: Correlation
How closely do Northrop Grumman (NOC) and Industrial Select Sector SPDR Fund (XLI) trade together? Their weekly returns over three years give a correlation of 0.29, which is weak.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NOC and XLI?
On 3 years of weekly data the NOC/XLI correlation comes out at 0.29, weak. Recent behaviour matches the longer record: 0.31 over 1 year against 0.29 over 3. The 5-year figure is 0.32, and annualized covariance runs at 120.4 %².
Among the 30 assets we track against NOC, XLI ranks #16 by 3-year correlation. The last year tells two different stories: XLI led by 23.9 percentage points, -5.6% for NOC against +18.3% for XLI. The relationship is regime-dependent: the rolling one-year correlation swung between 0.05 and 0.55 over the past three years, so this pair behaves very differently depending on the market environment. One caveat on sizing: NOC 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.
NOC vs XLI: side by side
| NOC (Northrop Grumman) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -5.6% | +18.3% |
| 5-year return | +60.1% | +84.0% |
| Volatility (ann.) | 26.7% | 15.7% |
| Beta vs S&P 500 | 0.24 | 0.89 |
| Max drawdown (3Y) | -35.1% | -18.5% |
| Market cap | $77.4B | – |
| P/E (trailing) | 17.5 | – |
| Dividend yield | 1.71% | 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 | NOC | XLI |
|---|---|---|
| 2022 | +43.0% | -5.6% |
| 2023 | -12.8% | +18.1% |
| 2024 | +1.9% | +17.3% |
| 2025 | +23.6% | +19.3% |
| 2026 | -3.7% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLI holds NOC at a 1.3% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are NOC and XLI good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.29 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between NOC and XLI?
The NOC/XLI correlation stands at 0.29 on a 3-year window (1 year: 0.31, 5 years: 0.32), computed from weekly returns as of 2026-08-27.
Is XLI a good diversifier for NOC?
Yes, to a useful degree: a correlation of 0.29 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.29 mean?
A reading of 0.29 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/noc-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/noc-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: NOC correlations · XLI correlations
