CF vs XLB: Correlation
How closely do CF Industries (CF) and Materials Select Sector SPDR Fund (XLB) trade together? Their weekly returns over three years give a correlation of 0.07, which is near-zero.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CF and XLB?
Across a 3-year window, the weekly returns of CF and XLB correlate at 0.07, near zero, meaning they move largely independently. The link has loosened recently: the 1-year correlation (-0.21) runs below the 3-year figure (0.07). Stretching to 5 years gives 0.21, with an annualized covariance of 38.5 %².
By 3-year correlation, XLB places #23 of the 50 assets tracked against CF. Correlation aside, the last 12 months split them widely, with CF ahead by 31.0 points (+48.6% versus +17.6%). The relationship is regime-dependent: the rolling one-year correlation swung between -0.22 and 0.50 over the past three years, so this pair behaves very differently depending on the market environment. One caveat on sizing: CF is 2.0 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.
CF vs XLB: side by side
| CF (CF Industries) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +48.6% | +17.6% |
| 5-year return | +211.5% | +36.9% |
| Volatility (ann.) | 32.8% | 16.7% |
| Beta vs S&P 500 | -0.20 | 0.72 |
| Max drawdown (3Y) | -29.2% | -23.2% |
| Market cap | $19.0B | – |
| P/E (trailing) | 9.3 | – |
| Dividend yield | 1.59% | 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 | CF | XLB |
|---|---|---|
| 2022 | +22.3% | -12.3% |
| 2023 | -4.7% | +12.5% |
| 2024 | +10.1% | +0.1% |
| 2025 | -7.2% | +9.9% |
| 2026 | +64.9% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 2.52% of XLB is CF itself, so the fund partly moves with the stock by construction.
Are CF and XLB good diversifiers for each other?
Yes: at 0.07, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between CF and XLB?
Using weekly returns as of 2026-08-27: 0.07 over 3 years, with -0.21 over the last year and 0.21 over 5 years.
Is XLB a good diversifier for CF?
Yes: at 0.07, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of 0.07 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/cf-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/cf-vs-xlb/)
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Related comparisons
Hubs: CF correlations · XLB correlations
