ALB vs XLB: Correlation
How closely do Albemarle Corporation (ALB) and Materials Select Sector SPDR Fund (XLB) trade together? Their weekly returns over three years give a correlation of 0.56, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ALB and XLB?
Across a 3-year window, the weekly returns of ALB and XLB correlate at 0.56, moderate. The relationship has been stable: the 1-year correlation (0.50) sits close to the 3-year figure. Stretching to 5 years gives 0.60, with an annualized covariance of 511.0 %².
Within ALB's tracked universe of 36 assets, XLB comes in at #5 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months ALB outperformed by 39.3 percentage points (+56.9% for ALB against +17.6% for XLB). On a rolling one-year basis the correlation drifted between 0.40 and 0.67, a moderate band. Note the risk asymmetry: ALB runs 3.3 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.
ALB vs XLB: side by side
| ALB (Albemarle Corporation) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +56.9% | +17.6% |
| 5-year return | -39.2% | +36.9% |
| Volatility (ann.) | 54.3% | 16.7% |
| Beta vs S&P 500 | 1.62 | 0.72 |
| Max drawdown (3Y) | -74.1% | -23.2% |
| Market cap | $16.0B | – |
| P/E (trailing) | 502.9 | – |
| Dividend yield | 1.20% | 1.68% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.3B |
| Sector / category | Materials | Sector ETF |
XLB is a Natural Resources fund from State Street Investment Management: $8.3B under management, 26 holdings, a 0.08% expense ratio, a 1.68% trailing dividend yield.
Year-by-year returns
| Year | ALB | XLB |
|---|---|---|
| 2022 | -6.6% | -12.3% |
| 2023 | -32.8% | +12.5% |
| 2024 | -39.5% | +0.1% |
| 2025 | +67.7% | +9.9% |
| 2026 | -3.5% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
ALB represents 2.07% of XLB's portfolio, so part of any move in XLB is ALB itself, and the correlation between them is partly mechanical.
Are ALB and XLB good diversifiers for each other?
Only partially. A correlation of 0.56 means ALB and XLB 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 ALB and XLB?
As of 2026-08-27, the correlation of weekly returns between ALB and XLB is 0.56 over 3 years, 0.50 over 1 year and 0.60 over 5 years.
Is XLB a good diversifier for ALB?
Only partially. A correlation of 0.56 means ALB and XLB share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.56 mean?
On the −1 to +1 scale, 0.56 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/alb-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/alb-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ALB correlations · XLB correlations
