CP vs XLB: Correlation
How closely do Canadian Pacific Kansas City Limited (CP) and Materials Select Sector SPDR Fund (XLB) trade together? Their weekly returns over three years give a correlation of 0.54, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CP and XLB?
Over the past 3 years, CP and XLB moved with a correlation of 0.54, which is moderate. Little has changed lately, as the 1-year reading of 0.51 lands near the 3-year figure. Over 5 years the correlation is 0.58, and the annualized covariance of weekly returns is 187.5 %².
By 3-year correlation, XLB places #4 of the 10 assets tracked against CP. On 12-month performance CP holds a 5.3-point edge, +22.9% against +17.6%.
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.
CP vs XLB: side by side
| CP (Canadian Pacific Kansas City Limited) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.9% | +17.6% |
| 5-year return | +35.4% | +36.9% |
| Volatility (ann.) | 20.9% | 16.7% |
| Beta vs S&P 500 | 0.51 | 0.72 |
| Max drawdown (3Y) | -25.9% | -23.2% |
| Market cap | $82.5B | – |
| P/E (trailing) | 30.5 | – |
| Dividend yield | 1.01% | 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 | CP | XLB |
|---|---|---|
| 2022 | +4.7% | -12.3% |
| 2023 | +6.8% | +12.5% |
| 2024 | -7.8% | +0.1% |
| 2025 | +2.4% | +9.9% |
| 2026 | +28.0% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CP and XLB good diversifiers for each other?
To a limited degree. At 0.54 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 CP and XLB?
The CP/XLB correlation stands at 0.54 on a 3-year window (1 year: 0.51, 5 years: 0.58), computed from weekly returns as of 2026-08-27.
Is XLB a good diversifier for CP?
To a limited degree. At 0.54 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 0.54 mean?
On the −1 to +1 scale, 0.54 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/cp-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/cp-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: CP correlations · XLB correlations
