XLF vs XYZ: Correlation
Measured on weekly returns over the past three years, Financial Select Sector SPDR Fund (XLF) and Block, Inc. (XYZ) carry a correlation of 0.47, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are XLF and XYZ?
Across a 3-year window, the weekly returns of XLF and XYZ correlate at 0.47, moderate. The past 12 months show a weaker link (0.32) than the 3-year average (0.47). Stretching to 5 years gives 0.54, with an annualized covariance of 384.2 %².
Within XLF's tracked universe of 169 assets, XYZ comes in at #127 by 3-year correlation. Neither side won the trailing year by much: +9.3% against +6.9%. Across three years, the rolling one-year figure varied moderately, from 0.33 to 0.67. Note the risk asymmetry: XYZ runs 3.1 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.
XLF vs XYZ: side by side
| XLF (Financial Select Sector SPDR Fund) | XYZ (Block, Inc.) | |
|---|---|---|
| 1-year return | +9.3% | +6.9% |
| 5-year return | +64.2% | -68.8% |
| Volatility (ann.) | 16.2% | 50.2% |
| Beta vs S&P 500 | 0.84 | 1.80 |
| Max drawdown (3Y) | -15.5% | -53.0% |
| Market cap | – | $51.0B |
| P/E (trailing) | – | 151.5 |
| Dividend yield | 1.42% | 0.00% |
| Expense ratio | 0.08% | – |
| Assets under management | $57.9B | – |
| Sector / category | Sector ETF | Financials |
On the fund side, XLF sits in the Financial category at State Street Investment Management, with $57.9B under management, 77 holdings, a 0.08% expense ratio, a 1.42% trailing dividend yield.
Year-by-year returns
| Year | XLF | XYZ |
|---|---|---|
| 2022 | -10.6% | -61.1% |
| 2023 | +12.0% | +23.1% |
| 2024 | +30.6% | +9.9% |
| 2025 | +14.9% | -23.4% |
| 2026 | +6.6% | +30.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.54% of XLF is XYZ itself, so the fund partly moves with the stock by construction.
Are XLF and XYZ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.47 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between XLF and XYZ?
Using weekly returns as of 2026-08-27: 0.47 over 3 years, with 0.32 over the last year and 0.54 over 5 years.
Is XYZ a good diversifier for XLF?
Yes, to a useful degree: a correlation of 0.47 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.47 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/xlf-vs-xyz.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/xlf-vs-xyz/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: XLF correlations · XYZ correlations
