PH vs XLI: Correlation
How closely do Parker Hannifin (PH) and Industrial Select Sector SPDR Fund (XLI) trade together? Their weekly returns over three years give a correlation of 0.79, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PH and XLI?
On 3 years of weekly data the PH/XLI correlation comes out at 0.79, strong. The link has loosened recently: the 1-year correlation (0.67) runs below the 3-year figure (0.79). The 5-year figure is 0.81, and annualized covariance runs at 332.1 %².
XLI is one of the assets that tracks PH most closely: it ranks #1 out of the 57 assets we track against PH. On 12-month performance PH holds a 14.5-point edge, +32.8% against +18.3%. Stability stands out here, with the rolling one-year correlation confined to 0.65 through 0.89. Risk is not evenly split, since PH carries 1.7 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 XLI: side by side
| PH (Parker Hannifin) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +32.8% | +18.3% |
| 5-year return | +256.4% | +84.0% |
| Volatility (ann.) | 26.6% | 15.7% |
| Beta vs S&P 500 | 1.16 | 0.89 |
| Max drawdown (3Y) | -26.8% | -18.5% |
| Market cap | $127.5B | – |
| P/E (trailing) | 36.5 | – |
| Dividend yield | 0.71% | 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 | PH | XLI |
|---|---|---|
| 2022 | -6.9% | -5.6% |
| 2023 | +60.8% | +18.1% |
| 2024 | +39.6% | +17.3% |
| 2025 | +39.5% | +19.3% |
| 2026 | +15.5% | +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 PH at a 2.31% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are PH and XLI good diversifiers for each other?
Somewhat, no more. With 0.79 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between PH and XLI?
Using weekly returns as of 2026-08-27: 0.79 over 3 years, with 0.67 over the last year and 0.81 over 5 years.
Is XLI a good diversifier for PH?
Somewhat, no more. With 0.79 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.79 mean?
On the −1 to +1 scale, 0.79 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/ph-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ph-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: PH correlations · XLI correlations
