PNR vs XLI: Correlation
How closely do Pentair (PNR) and Industrial Select Sector SPDR Fund (XLI) trade together? Their weekly returns over three years give a correlation of 0.62, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PNR and XLI?
On 3 years of weekly data the PNR/XLI correlation comes out at 0.62, strong. Lately the two have drifted apart, with the 1-year correlation at 0.34 versus 0.62 over 3 years. The 5-year figure is 0.66, and annualized covariance runs at 276.3 %².
By 3-year correlation, XLI places #4 of the 38 assets tracked against PNR. Correlation aside, the last 12 months split them widely, with XLI ahead by 60.8 points (-42.5% versus +18.3%). The relationship is regime-dependent: the rolling one-year correlation swung between 0.31 and 0.85 over the past three years, so this pair behaves very differently depending on the market environment. Note the risk asymmetry: PNR runs 1.8 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.
PNR vs XLI: side by side
| PNR (Pentair) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -42.5% | +18.3% |
| 5-year return | -14.1% | +84.0% |
| Volatility (ann.) | 28.2% | 15.7% |
| Beta vs S&P 500 | 1.07 | 0.89 |
| Max drawdown (3Y) | -45.0% | -18.5% |
| Market cap | $9.9B | – |
| P/E (trailing) | 16.2 | – |
| Dividend yield | 1.65% | 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 | PNR | XLI |
|---|---|---|
| 2022 | -37.4% | -5.6% |
| 2023 | +64.2% | +18.1% |
| 2024 | +40.0% | +17.3% |
| 2025 | +4.5% | +19.3% |
| 2026 | -39.8% | +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 PNR at a 0.18% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are PNR and XLI good diversifiers for each other?
To a limited degree. At 0.62 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 PNR and XLI?
The PNR/XLI correlation stands at 0.62 on a 3-year window (1 year: 0.34, 5 years: 0.66), computed from weekly returns as of 2026-08-27.
Is XLI a good diversifier for PNR?
To a limited degree. At 0.62 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 0.62 mean?
On the −1 to +1 scale, 0.62 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/pnr-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/pnr-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: PNR correlations · XLI correlations
