NUE vs XLI: Correlation
How closely do Nucor (NUE) 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 NUE and XLI?
On 3 years of weekly data the NUE/XLI correlation comes out at 0.57, moderate. The link has loosened recently: the 1-year correlation (0.35) runs below the 3-year figure (0.57). The 5-year figure is 0.60, and annualized covariance runs at 296.8 %².
Among the 34 assets we track against NUE, XLI ranks #15 by 3-year correlation. Correlation aside, the last 12 months split them widely, with NUE ahead by 51.8 points (+70.1% versus +18.3%). On a rolling one-year basis the correlation drifted between 0.30 and 0.77, a moderate band. Note the risk asymmetry: NUE runs 2.1 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.
NUE vs XLI: side by side
| NUE (Nucor) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +70.1% | +18.3% |
| 5-year return | +124.6% | +84.0% |
| Volatility (ann.) | 33.3% | 15.7% |
| Beta vs S&P 500 | 1.08 | 0.89 |
| Max drawdown (3Y) | -47.8% | -18.5% |
| Market cap | $57.3B | – |
| P/E (trailing) | 20.1 | – |
| Dividend yield | 0.88% | 1.15% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $32.9B |
| Sector / category | Materials | 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 | NUE | XLI |
|---|---|---|
| 2022 | +17.4% | -5.6% |
| 2023 | +33.8% | +18.1% |
| 2024 | -32.0% | +17.3% |
| 2025 | +42.0% | +19.3% |
| 2026 | +55.6% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NUE and XLI good diversifiers for each other?
Only partially. A correlation of 0.57 means NUE 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 NUE and XLI?
As of 2026-08-27, the correlation of weekly returns between NUE and XLI is 0.57 over 3 years, 0.35 over 1 year and 0.60 over 5 years.
Is XLI a good diversifier for NUE?
Only partially. A correlation of 0.57 means NUE 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 0.57 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/nue-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/nue-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: NUE correlations · XLI correlations
