TEL vs XLI: Correlation
TE Connectivity (TEL) and Industrial Select Sector SPDR Fund (XLI) show a strong relationship: their 3-year correlation of weekly returns is 0.67.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TEL and XLI?
Across a 3-year window, the weekly returns of TEL and XLI correlate at 0.67, strong. The link has loosened recently: the 1-year correlation (0.53) runs below the 3-year figure (0.67). Stretching to 5 years gives 0.71, with an annualized covariance of 303.0 %².
Among the 36 assets we track against TEL, XLI ranks #7 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLI ahead by 19.4 points (-1.1% versus +18.3%). Across three years, the rolling one-year figure varied moderately, from 0.51 to 0.87. Risk is not evenly split, since TEL carries 1.8 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.
TEL vs XLI: side by side
| TEL (TE Connectivity) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -1.1% | +18.3% |
| 5-year return | +43.7% | +84.0% |
| Volatility (ann.) | 28.8% | 15.7% |
| Beta vs S&P 500 | 1.32 | 0.89 |
| Max drawdown (3Y) | -22.6% | -18.5% |
| Market cap | $58.8B | – |
| P/E (trailing) | 20.1 | – |
| Dividend yield | 1.42% | 1.15% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $32.9B |
| Sector / category | Information Technology | 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 | TEL | XLI |
|---|---|---|
| 2022 | -27.7% | -5.6% |
| 2023 | +24.6% | +18.1% |
| 2024 | +3.5% | +17.3% |
| 2025 | +61.1% | +19.3% |
| 2026 | -9.8% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TEL and XLI good diversifiers for each other?
To a limited degree. At 0.67 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 TEL and XLI?
Using weekly returns as of 2026-08-27: 0.67 over 3 years, with 0.53 over the last year and 0.71 over 5 years.
Is XLI a good diversifier for TEL?
To a limited degree. At 0.67 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 0.67 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/tel-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/tel-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: TEL correlations · XLI correlations
