UNP vs XLI: Correlation
Measured on weekly returns over the past three years, Union Pacific Corporation (UNP) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of 0.56, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are UNP and XLI?
Across a 3-year window, the weekly returns of UNP and XLI correlate at 0.56, moderate. The past 12 months show a weaker link (0.25) than the 3-year average (0.56). Stretching to 5 years gives 0.63, with an annualized covariance of 181.3 %².
Within UNP's tracked universe of 33 assets, XLI comes in at #16 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months UNP outperformed by 24.1 percentage points (+42.4% for UNP against +18.3% for XLI). On a rolling one-year basis the correlation drifted between 0.34 and 0.78, a moderate band.
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.
UNP vs XLI: side by side
| UNP (Union Pacific Corporation) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +42.4% | +18.3% |
| 5-year return | +56.5% | +84.0% |
| Volatility (ann.) | 20.6% | 15.7% |
| Beta vs S&P 500 | 0.56 | 0.89 |
| Max drawdown (3Y) | -17.8% | -18.5% |
| Market cap | $182.8B | – |
| P/E (trailing) | 25.1 | – |
| Dividend yield | 1.78% | 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 | UNP | XLI |
|---|---|---|
| 2022 | -15.9% | -5.6% |
| 2023 | +21.6% | +18.1% |
| 2024 | -5.1% | +17.3% |
| 2025 | +3.9% | +19.3% |
| 2026 | +34.4% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
UNP represents 3.25% of XLI's portfolio, so part of any move in XLI is UNP itself, and the correlation between them is partly mechanical.
Are UNP and XLI good diversifiers for each other?
To a limited degree. At 0.56 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 UNP and XLI?
As of 2026-08-27, the correlation of weekly returns between UNP and XLI is 0.56 over 3 years, 0.25 over 1 year and 0.63 over 5 years.
Is XLI a good diversifier for UNP?
To a limited degree. At 0.56 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 0.56 mean?
A reading of 0.56 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/unp-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/unp-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: UNP correlations · XLI correlations
