WAB vs XLI: Correlation
Wabtec (WAB) and Industrial Select Sector SPDR Fund (XLI) show a strong relationship: their 3-year correlation of weekly returns is 0.71.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are WAB and XLI?
On 3 years of weekly data the WAB/XLI correlation comes out at 0.71, strong. The relationship has been stable: the 1-year correlation (0.62) sits close to the 3-year figure. The 5-year figure is 0.76, and annualized covariance runs at 283.4 %².
Few assets follow WAB as closely as XLI, which ranks #1 of 35 tracked partners. Correlation aside, the last 12 months split them widely, with WAB ahead by 34.6 points (+52.9% versus +18.3%). Across three years, the rolling one-year figure varied moderately, from 0.64 to 0.90. One caveat on sizing: WAB 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.
WAB vs XLI: side by side
| WAB (Wabtec) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +52.9% | +18.3% |
| 5-year return | +241.0% | +84.0% |
| Volatility (ann.) | 25.3% | 15.7% |
| Beta vs S&P 500 | 0.99 | 0.89 |
| Max drawdown (3Y) | -23.6% | -18.5% |
| Market cap | $50.2B | – |
| P/E (trailing) | 40.5 | – |
| Dividend yield | 0.37% | 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 | WAB | XLI |
|---|---|---|
| 2022 | +9.1% | -5.6% |
| 2023 | +28.0% | +18.1% |
| 2024 | +50.1% | +17.3% |
| 2025 | +13.2% | +19.3% |
| 2026 | +39.8% | +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 WAB at a 0.9% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are WAB and XLI good diversifiers for each other?
Only partially. A correlation of 0.71 means WAB 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 WAB and XLI?
Using weekly returns as of 2026-08-27: 0.71 over 3 years, with 0.62 over the last year and 0.76 over 5 years.
Is XLI a good diversifier for WAB?
Only partially. A correlation of 0.71 means WAB 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 0.71 mean?
On the −1 to +1 scale, 0.71 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/wab-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/wab-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: WAB correlations · XLI correlations
