TT vs XLI: Correlation
Trane Technologies (TT) and Industrial Select Sector SPDR Fund (XLI) show a strong relationship: their 3-year correlation of weekly returns is 0.72.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TT and XLI?
Across a 3-year window, the weekly returns of TT and XLI correlate at 0.72, strong. Little has changed lately, as the 1-year reading of 0.67 lands near the 3-year figure. Stretching to 5 years gives 0.74, with an annualized covariance of 315.3 %².
In TT's tracked universe of 37 assets, XLI sits right near the top at #3. Over the last 12 months XLI came out ahead by 10.5 percentage points (+7.8% against +18.3%). The link looks structural: the rolling one-year correlation barely moved, holding between 0.64 and 0.80. One caveat on sizing: TT is 1.8 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.
TT vs XLI: side by side
| TT (Trane Technologies) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +7.8% | +18.3% |
| 5-year return | +141.4% | +84.0% |
| Volatility (ann.) | 27.8% | 15.7% |
| Beta vs S&P 500 | 1.19 | 0.89 |
| Max drawdown (3Y) | -24.4% | -18.5% |
| Market cap | $100.0B | – |
| P/E (trailing) | 33.8 | – |
| Dividend yield | 0.86% | 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 | TT | XLI |
|---|---|---|
| 2022 | -15.3% | -5.6% |
| 2023 | +47.4% | +18.1% |
| 2024 | +53.0% | +17.3% |
| 2025 | +6.1% | +19.3% |
| 2026 | +17.3% | +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 TT at a 1.81% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are TT and XLI good diversifiers for each other?
Only partially. A correlation of 0.72 means TT and XLI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between TT and XLI?
Using weekly returns as of 2026-08-27: 0.72 over 3 years, with 0.67 over the last year and 0.74 over 5 years.
Is XLI a good diversifier for TT?
Only partially. A correlation of 0.72 means TT and XLI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.72 mean?
On the −1 to +1 scale, 0.72 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/tt-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/tt-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: TT correlations · XLI correlations
