VMC vs XLI: Correlation
Measured on weekly returns over the past three years, Vulcan Materials Company (VMC) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of 0.58, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VMC and XLI?
Across a 3-year window, the weekly returns of VMC and XLI correlate at 0.58, moderate. Little has changed lately, as the 1-year reading of 0.60 lands near the 3-year figure. Stretching to 5 years gives 0.63, with an annualized covariance of 231.0 %².
By 3-year correlation, XLI places #14 of the 34 assets tracked against VMC. Correlation aside, the last 12 months split them widely, with XLI ahead by 23.5 points (-5.2% versus +18.3%). On a rolling one-year basis the correlation drifted between 0.42 and 0.70, a moderate band. One caveat on sizing: VMC is 1.6 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.
VMC vs XLI: side by side
| VMC (Vulcan Materials Company) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -5.2% | +18.3% |
| 5-year return | +53.2% | +84.0% |
| Volatility (ann.) | 25.2% | 15.7% |
| Beta vs S&P 500 | 0.82 | 0.89 |
| Max drawdown (3Y) | -24.4% | -18.5% |
| Market cap | $35.5B | – |
| P/E (trailing) | 32.3 | – |
| Dividend yield | 0.74% | 1.15% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $32.9B |
| Sector / category | Materials | 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 | VMC | XLI |
|---|---|---|
| 2022 | -14.9% | -5.6% |
| 2023 | +30.8% | +18.1% |
| 2024 | +14.1% | +17.3% |
| 2025 | +11.7% | +19.3% |
| 2026 | -3.4% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VMC and XLI good diversifiers for each other?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between VMC and XLI?
The VMC/XLI correlation stands at 0.58 on a 3-year window (1 year: 0.60, 5 years: 0.63), computed from weekly returns as of 2026-08-27.
Is XLI a good diversifier for VMC?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.58 mean?
On the −1 to +1 scale, 0.58 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/vmc-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vmc-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VMC correlations · XLI correlations
