TDG vs XLI: Correlation
How closely do TransDigm Group (TDG) and Industrial Select Sector SPDR Fund (XLI) trade together? Their weekly returns over three years give a correlation of 0.53, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TDG and XLI?
Over the past 3 years, TDG and XLI moved with a correlation of 0.53, which is moderate. The past 12 months show a weaker link (0.35) than the 3-year average (0.53). Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 212.8 %².
By 3-year correlation, XLI places #6 of the 31 assets tracked against TDG. Correlation aside, the last 12 months split them widely, with XLI ahead by 27.4 points (-9.1% versus +18.3%). This link changes with the market regime, having swung between 0.28 and 0.80 on a rolling one-year basis. Risk is not evenly split, since TDG carries 1.6 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.
TDG vs XLI: side by side
| TDG (TransDigm Group) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -9.1% | +18.3% |
| 5-year return | +136.5% | +84.0% |
| Volatility (ann.) | 25.5% | 15.7% |
| Beta vs S&P 500 | 0.91 | 0.89 |
| Max drawdown (3Y) | -25.3% | -18.5% |
| Market cap | $65.6B | – |
| P/E (trailing) | 36.6 | – |
| Dividend yield | 0.00% | 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 | TDG | XLI |
|---|---|---|
| 2022 | +1.8% | -5.6% |
| 2023 | +66.6% | +18.1% |
| 2024 | +32.3% | +17.3% |
| 2025 | +12.2% | +19.3% |
| 2026 | -10.8% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
TDG represents 1.19% of XLI's portfolio, so part of any move in XLI is TDG itself, and the correlation between them is partly mechanical.
Are TDG and XLI good diversifiers for each other?
To a limited degree. At 0.53 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 TDG and XLI?
As of 2026-08-27, the correlation of weekly returns between TDG and XLI is 0.53 over 3 years, 0.35 over 1 year and 0.65 over 5 years.
Is XLI a good diversifier for TDG?
To a limited degree. At 0.53 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 0.53 mean?
A reading of 0.53 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/tdg-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/tdg-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: TDG correlations · XLI correlations
