DGZ vs XLB: Correlation
Measured on weekly returns over the past three years, DB Gold Short ETN due February 15, 2038 (DGZ) and Materials Select Sector SPDR Fund (XLB) carry a correlation of -0.15, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGZ and XLB?
On 3 years of weekly data the DGZ/XLB correlation comes out at -0.15, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.15) sits close to the 3-year figure. The 5-year figure is -0.21, and annualized covariance runs at -71.1 %².
Within DGZ's tracked universe of 156 assets, XLB comes in at #12 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLB ahead by 44.2 points (-26.6% versus +17.6%). Note the risk asymmetry: DGZ runs 1.7 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.
DGZ vs XLB: side by side
| DGZ (DB Gold Short ETN due February 15, 2038) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -26.6% | +17.6% |
| 5-year return | -50.3% | +36.9% |
| Volatility (ann.) | 28.3% | 16.7% |
| Beta vs S&P 500 | -0.18 | 0.72 |
| Max drawdown (3Y) | -59.5% | -23.2% |
| Dividend yield | – | 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 | DGZ | XLB |
|---|---|---|
| 2022 | +4.9% | -12.3% |
| 2023 | -4.7% | +12.5% |
| 2024 | -16.5% | +0.1% |
| 2025 | -32.5% | +9.9% |
| 2026 | -10.0% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGZ and XLB good diversifiers for each other?
By historical standards, yes. A correlation of -0.15 means the two rarely move for the same reasons.
FAQ
What is the correlation between DGZ and XLB?
The DGZ/XLB correlation stands at -0.15 on a 3-year window (1 year: -0.15, 5 years: -0.21), computed from weekly returns as of 2026-08-27.
Is XLB a good diversifier for DGZ?
By historical standards, yes. A correlation of -0.15 means the two rarely move for the same reasons.
What does a correlation of -0.15 mean?
On the −1 to +1 scale, -0.15 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/dgz-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/dgz-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: DGZ correlations · XLB correlations
