BF.B vs XLB: Correlation
Brown–Forman (BF.B) and Materials Select Sector SPDR Fund (XLB) show a moderate relationship: their 3-year correlation of weekly returns is 0.45.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BF.B and XLB?
Over the past 3 years, BF.B and XLB moved with a correlation of 0.45, which is moderate. Little has changed lately, as the 1-year reading of 0.47 lands near the 3-year figure. Over 5 years the correlation is 0.46, and the annualized covariance of weekly returns is 259.0 %².
Within BF.B's tracked universe of 36 assets, XLB comes in at #12 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLB outperformed by 25.0 percentage points (-7.4% for BF.B against +17.6% for XLB). On a rolling one-year basis the correlation drifted between 0.31 and 0.71, a moderate band. Risk is not evenly split, since BF.B carries 2.0 times the volatility of the other side.
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.
BF.B vs XLB: side by side
| BF.B (Brown–Forman) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -7.4% | +17.6% |
| 5-year return | -56.8% | +36.9% |
| Volatility (ann.) | 34.0% | 16.7% |
| Beta vs S&P 500 | 0.51 | 0.72 |
| Max drawdown (3Y) | -64.8% | -23.2% |
| Market cap | $12.5B | – |
| P/E (trailing) | 18.3 | – |
| Dividend yield | 3.26% | 1.68% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.3B |
| Sector / category | Consumer Staples | 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 | BF.B | XLB |
|---|---|---|
| 2022 | -8.9% | -12.3% |
| 2023 | -11.9% | +12.5% |
| 2024 | -32.2% | +0.1% |
| 2025 | -29.3% | +9.9% |
| 2026 | +6.6% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BF.B and XLB good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.45 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between BF.B and XLB?
The BF.B/XLB correlation stands at 0.45 on a 3-year window (1 year: 0.47, 5 years: 0.46), computed from weekly returns as of 2026-08-27.
Is XLB a good diversifier for BF.B?
Yes, to a useful degree: a correlation of 0.45 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.45 mean?
On the −1 to +1 scale, 0.45 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/bf-b-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/bf-b-vs-xlb/)
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Related comparisons
Hubs: BF.B correlations · XLB correlations
