DE vs XLB: Correlation
Deere & Company (DE) and Materials Select Sector SPDR Fund (XLB) show a moderate relationship: their 3-year correlation of weekly returns is 0.57.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DE and XLB?
Across a 3-year window, the weekly returns of DE and XLB correlate at 0.57, moderate. The relationship has been stable: the 1-year correlation (0.47) sits close to the 3-year figure. Stretching to 5 years gives 0.57, with an annualized covariance of 253.2 %².
By 3-year correlation, XLB places #6 of the 33 assets tracked against DE. Over the last 12 months DE came out ahead by 10.3 percentage points (+27.9% against +17.6%). On a rolling one-year basis the correlation drifted between 0.41 and 0.68, a moderate band. One caveat on sizing: DE is 1.6 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.
DE vs XLB: side by side
| DE (Deere & Company) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +27.9% | +17.6% |
| 5-year return | +74.5% | +36.9% |
| Volatility (ann.) | 26.7% | 16.7% |
| Beta vs S&P 500 | 0.65 | 0.72 |
| Max drawdown (3Y) | -19.9% | -23.2% |
| Market cap | $168.1B | – |
| P/E (trailing) | 35.2 | – |
| Dividend yield | 1.02% | 1.68% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.3B |
| Sector / category | Industrials | 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 | DE | XLB |
|---|---|---|
| 2022 | +26.6% | -12.3% |
| 2023 | -5.5% | +12.5% |
| 2024 | +7.6% | +0.1% |
| 2025 | +11.4% | +9.9% |
| 2026 | +34.5% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DE and XLB good diversifiers for each other?
To a limited degree. At 0.57 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 DE and XLB?
The DE/XLB correlation stands at 0.57 on a 3-year window (1 year: 0.47, 5 years: 0.57), computed from weekly returns as of 2026-08-27.
Is XLB a good diversifier for DE?
To a limited degree. At 0.57 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 0.57 mean?
A reading of 0.57 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/de-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/de-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: DE correlations · XLB correlations
