USAR vs XLF: Correlation
Measured on weekly returns over the past three years, USA Rare Earth, Inc. (USAR) and Financial Select Sector SPDR Fund (XLF) carry a correlation of -0.16, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are USAR and XLF?
Across a 3-year window, the weekly returns of USAR and XLF correlate at -0.16, negative, meaning they tend to move in opposite directions. The past 12 months show a tighter link (-0.03) than the 3-year average (-0.16). Stretching to 5 years gives n/a, with an annualized covariance of -253.6 %².
By 3-year correlation, XLF places #11 of the 34 assets tracked against USAR. The trailing year gives USAR the advantage: +22.7% versus +9.3%, a 13.4-point spread. Note the risk asymmetry: USAR runs 6.1 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.
USAR vs XLF: side by side
| USAR (USA Rare Earth, Inc.) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.7% | +9.3% |
| 5-year return | n/a | +64.2% |
| Volatility (ann.) | 98.3% | 16.2% |
| Beta vs S&P 500 | -0.14 | 0.84 |
| Max drawdown (3Y) | -69.2% | -15.5% |
| Market cap | $4.7B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | US Listed | 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 | USAR | XLF |
|---|---|---|
| 2022 | – | -10.6% |
| 2023 | – | +12.0% |
| 2024 | +11.1% | +30.6% |
| 2025 | +3.7% | +14.9% |
| 2026 | +61.8% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are USAR and XLF good diversifiers for each other?
Yes: at -0.16, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between USAR and XLF?
The USAR/XLF correlation stands at -0.16 on a 3-year window (1 year: -0.03, 5 years: n/a), computed from weekly returns as of 2026-08-27.
Is XLF a good diversifier for USAR?
Yes: at -0.16, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.16 mean?
A reading of -0.16 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: USAR correlations · XLF correlations
