TRV vs XLF: Correlation
How closely do Travelers Companies (The) (TRV) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of 0.51, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TRV and XLF?
Over the past 3 years, TRV and XLF moved with a correlation of 0.51, which is moderate. Recent behaviour matches the longer record: 0.42 over 1 year against 0.51 over 3. Over 5 years the correlation is 0.57, and the annualized covariance of weekly returns is 170.4 %².
Within TRV's tracked universe of 29 assets, XLF comes in at #17 by 3-year correlation. The last year tells two different stories: TRV led by 28.5 percentage points, +37.8% for TRV against +9.3% for XLF. Stability stands out here, with the rolling one-year correlation confined to 0.44 through 0.63.
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.
TRV vs XLF: side by side
| TRV (Travelers Companies (The)) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +37.8% | +9.3% |
| 5-year return | +155.3% | +64.2% |
| Volatility (ann.) | 20.8% | 16.2% |
| Beta vs S&P 500 | 0.36 | 0.84 |
| Max drawdown (3Y) | -12.5% | -15.5% |
| Market cap | $77.0B | – |
| P/E (trailing) | 10.0 | – |
| Dividend yield | 1.23% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | Financials | 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 | TRV | XLF |
|---|---|---|
| 2022 | +22.4% | -10.6% |
| 2023 | +3.9% | +12.0% |
| 2024 | +28.8% | +30.6% |
| 2025 | +22.4% | +14.9% |
| 2026 | +28.3% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.96% of XLF is TRV itself, so the fund partly moves with the stock by construction.
Are TRV and XLF good diversifiers for each other?
To a limited degree. At 0.51 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 TRV and XLF?
The TRV/XLF correlation stands at 0.51 on a 3-year window (1 year: 0.42, 5 years: 0.57), computed from weekly returns as of 2026-08-27.
Is XLF a good diversifier for TRV?
To a limited degree. At 0.51 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 0.51 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: TRV correlations · XLF correlations
