RTX vs XLF: Correlation
RTX Corporation (RTX) and Financial Select Sector SPDR Fund (XLF) show a moderate relationship: their 3-year correlation of weekly returns is 0.43.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RTX and XLF?
Across a 3-year window, the weekly returns of RTX and XLF correlate at 0.43, moderate. Recent behaviour matches the longer record: 0.39 over 1 year against 0.43 over 3. Stretching to 5 years gives 0.49, with an annualized covariance of 175.3 %².
By 3-year correlation, XLF places #15 of the 27 assets tracked against RTX. Correlation aside, the last 12 months split them widely, with RTX ahead by 25.4 points (+34.7% versus +9.3%). On a rolling one-year basis the correlation drifted between 0.20 and 0.67, a moderate band. One caveat on sizing: RTX is 1.5 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
RTX vs XLF: side by side
| RTX (RTX Corporation) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +34.7% | +9.3% |
| 5-year return | +178.4% | +64.2% |
| Volatility (ann.) | 25.1% | 16.2% |
| Beta vs S&P 500 | 0.57 | 0.84 |
| Max drawdown (3Y) | -19.7% | -15.5% |
| Market cap | $285.8B | – |
| P/E (trailing) | 37.3 | – |
| Dividend yield | 1.31% | 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 | RTX | XLF |
|---|---|---|
| 2022 | +20.0% | -10.6% |
| 2023 | -14.4% | +12.0% |
| 2024 | +40.8% | +30.6% |
| 2025 | +61.4% | +14.9% |
| 2026 | +16.9% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RTX and XLF good diversifiers for each other?
Reasonably. At 0.43, RTX and XLF keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between RTX and XLF?
The RTX/XLF correlation stands at 0.43 on a 3-year window (1 year: 0.39, 5 years: 0.49), computed from weekly returns as of 2026-08-27.
Is XLF a good diversifier for RTX?
Reasonably. At 0.43, RTX and XLF keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.43 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: RTX correlations · XLF correlations
