TEX vs XLI: Correlation
How closely do Terex Corporation (TEX) and Industrial Select Sector SPDR Fund (XLI) trade together? Their weekly returns over three years give a correlation of 0.69, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TEX and XLI?
Over the past 3 years, TEX and XLI moved with a correlation of 0.69, which is strong. Little has changed lately, as the 1-year reading of 0.59 lands near the 3-year figure. Over 5 years the correlation is 0.72, and the annualized covariance of weekly returns is 448.0 %².
Within TEX's tracked universe of 23 assets, XLI comes in at #5 by 3-year correlation. On 12-month performance TEX holds a 5.9-point edge, +24.2% against +18.3%. One caveat on sizing: TEX is 2.6 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.
TEX vs XLI: side by side
| TEX (Terex Corporation) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +24.2% | +18.3% |
| 5-year return | +31.7% | +84.0% |
| Volatility (ann.) | 41.0% | 15.7% |
| Beta vs S&P 500 | 1.38 | 0.89 |
| Max drawdown (3Y) | -51.3% | -18.5% |
| Market cap | $7.4B | – |
| P/E (trailing) | 31.2 | – |
| Dividend yield | 1.04% | 1.15% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $32.9B |
| Sector / category | US Listed | 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 | TEX | XLI |
|---|---|---|
| 2022 | -1.4% | -5.6% |
| 2023 | +36.1% | +18.1% |
| 2024 | -18.6% | +17.3% |
| 2025 | +17.3% | +19.3% |
| 2026 | +21.9% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TEX and XLI good diversifiers for each other?
To a limited degree. At 0.69 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 TEX and XLI?
The TEX/XLI correlation stands at 0.69 on a 3-year window (1 year: 0.59, 5 years: 0.72), computed from weekly returns as of 2026-08-27.
Is XLI a good diversifier for TEX?
To a limited degree. At 0.69 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 0.69 mean?
A reading of 0.69 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/tex-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/tex-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: TEX correlations · XLI correlations
