WWD vs XLI: Correlation
Measured on weekly returns over the past three years, Woodward, Inc. (WWD) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of 0.66, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are WWD and XLI?
Over the past 3 years, WWD and XLI moved with a correlation of 0.66, which is strong. The relationship has been stable: the 1-year correlation (0.70) sits close to the 3-year figure. Over 5 years the correlation is 0.67, and the annualized covariance of weekly returns is 345.2 %².
Few assets follow WWD as closely as XLI, which ranks #1 of 13 tracked partners. The last year tells two different stories: WWD led by 20.9 percentage points, +39.2% for WWD against +18.3% for XLI. One caveat on sizing: WWD is 2.1 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.
WWD vs XLI: side by side
| WWD (Woodward, Inc.) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +39.2% | +18.3% |
| 5-year return | +191.7% | +84.0% |
| Volatility (ann.) | 33.5% | 15.7% |
| Beta vs S&P 500 | 1.09 | 0.89 |
| Max drawdown (3Y) | -23.6% | -18.5% |
| Market cap | $20.4B | – |
| P/E (trailing) | 38.5 | – |
| Dividend yield | 0.28% | 1.15% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $32.9B |
| Sector / category | US Listed | 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 | WWD | XLI |
|---|---|---|
| 2022 | -11.1% | -5.6% |
| 2023 | +42.0% | +18.1% |
| 2024 | +23.0% | +17.3% |
| 2025 | +82.6% | +19.3% |
| 2026 | +14.9% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are WWD and XLI good diversifiers for each other?
Somewhat, no more. With 0.66 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between WWD and XLI?
Using weekly returns as of 2026-08-27: 0.66 over 3 years, with 0.70 over the last year and 0.67 over 5 years.
Is XLI a good diversifier for WWD?
Somewhat, no more. With 0.66 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.66 mean?
On the −1 to +1 scale, 0.66 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/wwd-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/wwd-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: WWD correlations · XLI correlations
