APD vs XLB: Correlation
Air Products (APD) and Materials Select Sector SPDR Fund (XLB) show a moderate relationship: their 3-year correlation of weekly returns is 0.53.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are APD and XLB?
Across a 3-year window, the weekly returns of APD and XLB correlate at 0.53, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.32 versus 0.53 over 3 years. Stretching to 5 years gives 0.60, with an annualized covariance of 238.0 %².
XLB is one of the assets that tracks APD most closely: it ranks #1 out of the 33 assets we track against APD. Over the last 12 months XLB came out ahead by 11.1 percentage points (+6.5% against +17.6%). Across three years, the rolling one-year figure varied moderately, from 0.34 to 0.81. One caveat on sizing: APD is 1.6 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.
APD vs XLB: side by side
| APD (Air Products) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +6.5% | +17.6% |
| 5-year return | +28.2% | +36.9% |
| Volatility (ann.) | 26.7% | 16.7% |
| Beta vs S&P 500 | 0.64 | 0.72 |
| Max drawdown (3Y) | -30.4% | -23.2% |
| Market cap | $68.0B | – |
| P/E (trailing) | – | – |
| Dividend yield | 2.35% | 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 | APD | XLB |
|---|---|---|
| 2022 | +3.9% | -12.3% |
| 2023 | -9.0% | +12.5% |
| 2024 | +8.1% | +0.1% |
| 2025 | -12.7% | +9.9% |
| 2026 | +26.1% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLB holds APD at a 4.71% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are APD and XLB good diversifiers for each other?
Somewhat, no more. With 0.53 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between APD and XLB?
As of 2026-08-27, the correlation of weekly returns between APD and XLB is 0.53 over 3 years, 0.32 over 1 year and 0.60 over 5 years.
Is XLB a good diversifier for APD?
Somewhat, no more. With 0.53 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.53 mean?
A reading of 0.53 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/apd-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/apd-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: APD correlations · XLB correlations
