SWK vs XLI: Correlation
Measured on weekly returns over the past three years, Stanley Black & Decker (SWK) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of 0.62, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SWK and XLI?
On 3 years of weekly data the SWK/XLI correlation comes out at 0.62, strong. Recent behaviour matches the longer record: 0.66 over 1 year against 0.62 over 3. The 5-year figure is 0.62, and annualized covariance runs at 346.8 %².
Within SWK's tracked universe of 55 assets, XLI comes in at #19 by 3-year correlation. Correlation aside, the last 12 months split them widely, with SWK ahead by 18.7 points (+37.0% versus +18.3%). The rolling one-year correlation moved between 0.49 and 0.77 over the past three years, a moderate range. Risk is not evenly split, since SWK carries 2.3 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.
SWK vs XLI: side by side
| SWK (Stanley Black & Decker) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +37.0% | +18.3% |
| 5-year return | -39.1% | +84.0% |
| Volatility (ann.) | 35.4% | 15.7% |
| Beta vs S&P 500 | 1.19 | 0.89 |
| Max drawdown (3Y) | -48.3% | -18.5% |
| Market cap | $15.0B | – |
| P/E (trailing) | 24.4 | – |
| Dividend yield | 3.33% | 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 | SWK | XLI |
|---|---|---|
| 2022 | -58.9% | -5.6% |
| 2023 | +35.6% | +18.1% |
| 2024 | -15.2% | +17.3% |
| 2025 | -3.2% | +19.3% |
| 2026 | +36.5% | +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 SWK at a 0.27% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are SWK and XLI good diversifiers for each other?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SWK and XLI?
Using weekly returns as of 2026-08-27: 0.62 over 3 years, with 0.66 over the last year and 0.62 over 5 years.
Is XLI a good diversifier for SWK?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.62 mean?
A reading of 0.62 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/swk-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/swk-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: SWK correlations · XLI correlations
