PAYX vs XLI: Correlation
Paychex (PAYX) and Industrial Select Sector SPDR Fund (XLI) show a moderate relationship: their 3-year correlation of weekly returns is 0.30.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PAYX and XLI?
Across a 3-year window, the weekly returns of PAYX and XLI correlate at 0.30, moderate. The link has loosened recently: the 1-year correlation (-0.15) runs below the 3-year figure (0.30). Stretching to 5 years gives 0.52, with an annualized covariance of 101.3 %².
By 3-year correlation, XLI places #26 of the 37 assets tracked against PAYX. Correlation aside, the last 12 months split them widely, with XLI ahead by 23.1 points (-4.8% versus +18.3%). The relationship is regime-dependent: the rolling one-year correlation swung between -0.11 and 0.77 over the past three years, so this pair behaves very differently depending on the market environment.
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.
PAYX vs XLI: side by side
| PAYX (Paychex) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -4.8% | +18.3% |
| 5-year return | +29.0% | +84.0% |
| Volatility (ann.) | 21.3% | 15.7% |
| Beta vs S&P 500 | 0.47 | 0.89 |
| Max drawdown (3Y) | -45.0% | -18.5% |
| Market cap | $45.0B | – |
| P/E (trailing) | 25.5 | – |
| Dividend yield | 0.00% | 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 | PAYX | XLI |
|---|---|---|
| 2022 | -13.2% | -5.6% |
| 2023 | +6.2% | +18.1% |
| 2024 | +21.3% | +17.3% |
| 2025 | -17.5% | +19.3% |
| 2026 | +16.6% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
PAYX represents 0.71% of XLI's portfolio, so part of any move in XLI is PAYX itself, and the correlation between them is partly mechanical.
Are PAYX and XLI good diversifiers for each other?
Reasonably. At 0.30, PAYX and XLI keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between PAYX and XLI?
As of 2026-08-27, the correlation of weekly returns between PAYX and XLI is 0.30 over 3 years, -0.15 over 1 year and 0.52 over 5 years.
Is XLI a good diversifier for PAYX?
Reasonably. At 0.30, PAYX and XLI keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.30 mean?
A reading of 0.30 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/payx-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/payx-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: PAYX correlations · XLI correlations
