AVY vs XLB: Correlation
How closely do Avery Dennison (AVY) and Materials Select Sector SPDR Fund (XLB) trade together? Their weekly returns over three years give a correlation of 0.67, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AVY and XLB?
Across a 3-year window, the weekly returns of AVY and XLB correlate at 0.67, strong. Recent behaviour matches the longer record: 0.60 over 1 year against 0.67 over 3. Stretching to 5 years gives 0.70, with an annualized covariance of 226.7 %².
Few assets follow AVY as closely as XLB, which ranks #2 of 38 tracked partners. On 12-month performance XLB holds a 12.3-point edge, +5.3% against +17.6%. The rolling one-year correlation moved between 0.55 and 0.83 over the past three years, a moderate range.
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.
AVY vs XLB: side by side
| AVY (Avery Dennison) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +5.3% | +17.6% |
| 5-year return | -14.0% | +36.9% |
| Volatility (ann.) | 20.2% | 16.7% |
| Beta vs S&P 500 | 0.61 | 0.72 |
| Max drawdown (3Y) | -30.6% | -23.2% |
| Market cap | $13.5B | – |
| P/E (trailing) | 20.0 | – |
| Dividend yield | 2.10% | 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 | AVY | XLB |
|---|---|---|
| 2022 | -15.1% | -12.3% |
| 2023 | +13.7% | +12.5% |
| 2024 | -5.9% | +0.1% |
| 2025 | -0.7% | +9.9% |
| 2026 | -0.8% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
AVY represents 1.82% of XLB's portfolio, so part of any move in XLB is AVY itself, and the correlation between them is partly mechanical.
Are AVY and XLB good diversifiers for each other?
Only partially. A correlation of 0.67 means AVY 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 AVY and XLB?
As of 2026-08-27, the correlation of weekly returns between AVY and XLB is 0.67 over 3 years, 0.60 over 1 year and 0.70 over 5 years.
Is XLB a good diversifier for AVY?
Only partially. A correlation of 0.67 means AVY 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 0.67 mean?
On the −1 to +1 scale, 0.67 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/avy-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/avy-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AVY correlations · XLB correlations
