PH vs XLF: Correlation
How closely do Parker Hannifin (PH) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.67, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PH and XLF?
Over the past 3 years, PH and XLF moved with a correlation of 0.67, which is strong. The link has loosened recently: the 1-year correlation (0.37) runs below the 3-year figure (0.67). Over 5 years the correlation is 0.70, and the annualized covariance of weekly returns is 287.8 %².
Among the 57 assets we track against PH, XLF ranks #15 by 3-year correlation. Correlation aside, the last 12 months split them widely, with PH ahead by 23.5 points (+32.8% versus +9.3%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.37 to 0.88. Risk is not evenly split, since PH 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.
PH vs XLF: side by side
| PH (Parker Hannifin) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +32.8% | +9.3% |
| 5-year return | +256.4% | +64.2% |
| Volatility (ann.) | 26.6% | 16.2% |
| Beta vs S&P 500 | 1.16 | 0.84 |
| Max drawdown (3Y) | -26.8% | -15.5% |
| Market cap | $127.5B | – |
| P/E (trailing) | 36.5 | – |
| Dividend yield | 0.71% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | Industrials | 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 | PH | XLF |
|---|---|---|
| 2022 | -6.9% | -10.6% |
| 2023 | +60.8% | +12.0% |
| 2024 | +39.6% | +30.6% |
| 2025 | +39.5% | +14.9% |
| 2026 | +15.5% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PH and XLF good diversifiers for each other?
To a limited degree. At 0.67 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 PH and XLF?
Using weekly returns as of 2026-08-27: 0.67 over 3 years, with 0.37 over the last year and 0.70 over 5 years.
Is XLF a good diversifier for PH?
To a limited degree. At 0.67 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 0.67 mean?
On the −1 to +1 scale, 0.67 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.
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Related comparisons
Hubs: PH correlations · XLF correlations
