PRU vs XLF: Correlation
How closely do Prudential Financial (PRU) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.73, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PRU and XLF?
Over the past 3 years, PRU and XLF moved with a correlation of 0.73, which is strong. Lately the two have drifted apart, with the 1-year correlation at 0.55 versus 0.73 over 3 years. Over 5 years the correlation is 0.82, and the annualized covariance of weekly returns is 270.2 %².
In PRU's tracked universe of 31 assets, XLF sits right near the top at #2. Over the last 12 months PRU came out ahead by 6.5 percentage points (+15.8% against +9.3%). The rolling one-year correlation moved between 0.56 and 0.90 over the past three years, a moderate range.
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.
PRU vs XLF: side by side
| PRU (Prudential Financial) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +15.8% | +9.3% |
| 5-year return | +45.1% | +64.2% |
| Volatility (ann.) | 23.0% | 16.2% |
| Beta vs S&P 500 | 0.79 | 0.84 |
| Max drawdown (3Y) | -25.7% | -15.5% |
| Market cap | $41.5B | – |
| P/E (trailing) | 10.9 | – |
| Dividend yield | 4.57% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | Financials | 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 | PRU | XLF |
|---|---|---|
| 2022 | -3.9% | -10.6% |
| 2023 | +10.1% | +12.0% |
| 2024 | +19.5% | +30.6% |
| 2025 | +0.2% | +14.9% |
| 2026 | +10.8% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.51% of XLF is PRU itself, so the fund partly moves with the stock by construction.
Are PRU and XLF good diversifiers for each other?
Only partially. A correlation of 0.73 means PRU and XLF 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 PRU and XLF?
As of 2026-08-27, the correlation of weekly returns between PRU and XLF is 0.73 over 3 years, 0.55 over 1 year and 0.82 over 5 years.
Is XLF a good diversifier for PRU?
Only partially. A correlation of 0.73 means PRU and XLF share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.73 mean?
A reading of 0.73 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: PRU correlations · XLF correlations
