AOS vs XLB: Correlation
How closely do A. O. Smith (AOS) and Materials Select Sector SPDR Fund (XLB) trade together? Their weekly returns over three years give a correlation of 0.66, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AOS and XLB?
Over the past 3 years, AOS and XLB moved with a correlation of 0.66, which is strong. Little has changed lately, as the 1-year reading of 0.69 lands near the 3-year figure. Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 258.6 %².
Among the 33 assets we track against AOS, XLB ranks #4 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLB ahead by 30.2 points (-12.6% versus +17.6%). The rolling one-year correlation stayed in a tight band between 0.56 and 0.72 over the past three years, which points to a structural rather than episodic relationship.
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.
AOS vs XLB: side by side
| AOS (A. O. Smith) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -12.6% | +17.6% |
| 5-year return | -6.7% | +36.9% |
| Volatility (ann.) | 23.5% | 16.7% |
| Beta vs S&P 500 | 0.67 | 0.72 |
| Max drawdown (3Y) | -36.9% | -23.2% |
| Market cap | $8.4B | – |
| P/E (trailing) | 17.4 | – |
| Dividend yield | 2.27% | 1.68% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.3B |
| Sector / category | Industrials | 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 | AOS | XLB |
|---|---|---|
| 2022 | -32.1% | -12.3% |
| 2023 | +46.7% | +12.5% |
| 2024 | -15.9% | +0.1% |
| 2025 | +0.1% | +9.9% |
| 2026 | -5.8% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AOS and XLB good diversifiers for each other?
To a limited degree. At 0.66 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 AOS and XLB?
As of 2026-08-27, the correlation of weekly returns between AOS and XLB is 0.66 over 3 years, 0.69 over 1 year and 0.65 over 5 years.
Is XLB a good diversifier for AOS?
To a limited degree. At 0.66 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 0.66 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/aos-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/aos-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AOS correlations · XLB correlations
