TXT vs XLI: Correlation
Textron (TXT) and Industrial Select Sector SPDR Fund (XLI) show a strong relationship: their 3-year correlation of weekly returns is 0.69.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TXT and XLI?
On 3 years of weekly data the TXT/XLI correlation comes out at 0.69, strong. The relationship has been stable: the 1-year correlation (0.59) sits close to the 3-year figure. The 5-year figure is 0.73, and annualized covariance runs at 274.8 %².
Few assets follow TXT as closely as XLI, which ranks #1 of 39 tracked partners. Correlation aside, the last 12 months split them widely, with XLI ahead by 17.6 points (+0.7% versus +18.3%). Across three years, the rolling one-year figure varied moderately, from 0.42 to 0.89. Note the risk asymmetry: TXT runs 1.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
TXT vs XLI: side by side
| TXT (Textron) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +0.7% | +18.3% |
| 5-year return | +15.1% | +84.0% |
| Volatility (ann.) | 25.4% | 15.7% |
| Beta vs S&P 500 | 0.89 | 0.89 |
| Max drawdown (3Y) | -37.3% | -18.5% |
| Market cap | $14.2B | – |
| P/E (trailing) | 15.7 | – |
| Dividend yield | 0.10% | 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 | TXT | XLI |
|---|---|---|
| 2022 | -8.2% | -5.6% |
| 2023 | +13.7% | +18.1% |
| 2024 | -4.8% | +17.3% |
| 2025 | +14.1% | +19.3% |
| 2026 | -5.5% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.26% of XLI is TXT itself, so the fund partly moves with the stock by construction.
Are TXT and XLI good diversifiers for each other?
Only partially. A correlation of 0.69 means TXT 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 TXT and XLI?
Using weekly returns as of 2026-08-27: 0.69 over 3 years, with 0.59 over the last year and 0.73 over 5 years.
Is XLI a good diversifier for TXT?
Only partially. A correlation of 0.69 means TXT 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 0.69 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/txt-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/txt-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: TXT correlations · XLI correlations
