ALSN vs XLB: Correlation
Measured on weekly returns over the past three years, Allison Transmission Holdings, Inc. (ALSN) and Materials Select Sector SPDR Fund (XLB) carry a correlation of 0.59, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ALSN and XLB?
Across a 3-year window, the weekly returns of ALSN and XLB correlate at 0.59, moderate. The relationship has been stable: the 1-year correlation (0.63) sits close to the 3-year figure. Stretching to 5 years gives 0.56, with an annualized covariance of 296.5 %².
Within ALSN's tracked universe of 12 assets, XLB comes in at #5 by 3-year correlation. Correlation aside, the last 12 months split them widely, with ALSN ahead by 28.7 points (+46.3% versus +17.6%). Note the risk asymmetry: ALSN runs 1.8 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.
ALSN vs XLB: side by side
| ALSN (Allison Transmission Holdings, Inc.) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +46.3% | +17.6% |
| 5-year return | +271.5% | +36.9% |
| Volatility (ann.) | 29.8% | 16.7% |
| Beta vs S&P 500 | 0.81 | 0.72 |
| Max drawdown (3Y) | -33.6% | -23.2% |
| Market cap | $10.7B | – |
| P/E (trailing) | 20.4 | – |
| Dividend yield | 0.87% | 1.68% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.3B |
| Sector / category | US Listed | 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 | ALSN | XLB |
|---|---|---|
| 2022 | +16.9% | -12.3% |
| 2023 | +42.3% | +12.5% |
| 2024 | +88.0% | +0.1% |
| 2025 | -8.3% | +9.9% |
| 2026 | +32.9% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ALSN and XLB good diversifiers for each other?
To a limited degree. At 0.59 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between ALSN and XLB?
The ALSN/XLB correlation stands at 0.59 on a 3-year window (1 year: 0.63, 5 years: 0.56), computed from weekly returns as of 2026-08-27.
Is XLB a good diversifier for ALSN?
To a limited degree. At 0.59 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.59 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/alsn-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/alsn-vs-xlb/)
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Related comparisons
Hubs: ALSN correlations · XLB correlations
