CNH vs XLB: Correlation
CNH Industrial N.V. (CNH) and Materials Select Sector SPDR Fund (XLB) show a strong relationship: their 3-year correlation of weekly returns is 0.66.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CNH and XLB?
On 3 years of weekly data the CNH/XLB correlation comes out at 0.66, strong. Recent behaviour matches the longer record: 0.63 over 1 year against 0.66 over 3. The 5-year figure is 0.68, and annualized covariance runs at 368.2 %².
In CNH's tracked universe of 15 assets, XLB sits right near the top at #3. Correlation aside, the last 12 months split them widely, with XLB ahead by 22.0 points (-4.4% versus +17.6%). Note the risk asymmetry: CNH runs 2.0 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
CNH vs XLB: side by side
| CNH (CNH Industrial N.V.) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -4.4% | +17.6% |
| 5-year return | -12.0% | +36.9% |
| Volatility (ann.) | 33.5% | 16.7% |
| Beta vs S&P 500 | 0.73 | 0.72 |
| Max drawdown (3Y) | -33.2% | -23.2% |
| Market cap | $18.4B | – |
| P/E (trailing) | 45.7 | – |
| Dividend yield | 0.86% | 1.68% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.3B |
| Sector / category | US Listed | 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 | CNH | XLB |
|---|---|---|
| 2022 | -3.2% | -12.3% |
| 2023 | -22.0% | +12.5% |
| 2024 | -3.1% | +0.1% |
| 2025 | -17.1% | +9.9% |
| 2026 | +25.2% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CNH and XLB good diversifiers for each other?
Only partially. A correlation of 0.66 means CNH 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 CNH and XLB?
Using weekly returns as of 2026-08-27: 0.66 over 3 years, with 0.63 over the last year and 0.68 over 5 years.
Is XLB a good diversifier for CNH?
Only partially. A correlation of 0.66 means CNH 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 0.66 mean?
A reading of 0.66 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/cnh-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/cnh-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: CNH correlations · XLB correlations
