BAX vs XLB: Correlation
How closely do Baxter International (BAX) and Materials Select Sector SPDR Fund (XLB) trade together? Their weekly returns over three years give a correlation of 0.52, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BAX and XLB?
Over the past 3 years, BAX and XLB moved with a correlation of 0.52, which is moderate. Little has changed lately, as the 1-year reading of 0.45 lands near the 3-year figure. Over 5 years the correlation is 0.45, and the annualized covariance of weekly returns is 332.3 %².
By 3-year correlation, XLB places #15 of the 43 assets tracked against BAX. On 12-month performance XLB holds a 11.0-point edge, +6.6% against +17.6%. The rolling one-year correlation moved between 0.33 and 0.72 over the past three years, a moderate range. One caveat on sizing: BAX is 2.3 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.
BAX vs XLB: side by side
| BAX (Baxter International) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +6.6% | +17.6% |
| 5-year return | -62.2% | +36.9% |
| Volatility (ann.) | 38.4% | 16.7% |
| Beta vs S&P 500 | 0.89 | 0.72 |
| Max drawdown (3Y) | -62.4% | -23.2% |
| Market cap | $13.4B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.75% | 1.68% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.3B |
| Sector / category | Health Care | 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 | BAX | XLB |
|---|---|---|
| 2022 | -39.6% | -12.3% |
| 2023 | -21.9% | +12.5% |
| 2024 | -22.4% | +0.1% |
| 2025 | -33.3% | +9.9% |
| 2026 | +35.8% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BAX and XLB good diversifiers for each other?
To a limited degree. At 0.52 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 BAX and XLB?
The BAX/XLB correlation stands at 0.52 on a 3-year window (1 year: 0.45, 5 years: 0.45), computed from weekly returns as of 2026-08-27.
Is XLB a good diversifier for BAX?
To a limited degree. At 0.52 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 0.52 mean?
A reading of 0.52 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/bax-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/bax-vs-xlb/)
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Related comparisons
Hubs: BAX correlations · XLB correlations
