DOW vs LYB: Correlation
Dow Inc. (DOW) and LyondellBasell (LYB) show a very strong relationship: their 3-year correlation of weekly returns is 0.88.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DOW and LYB?
On 3 years of weekly data the DOW/LYB correlation comes out at 0.88, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.89 over 1 year against 0.88 over 3. The 5-year figure is 0.87, and annualized covariance runs at 1040.5 %².
In DOW's tracked universe of 32 assets, LYB sits right near the top at #1. The trailing year gives DOW the advantage: +29.0% versus +19.1%, a 9.9-point spread. Stability stands out here, with the rolling one-year correlation confined to 0.77 through 0.91.
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.
DOW vs LYB: side by side
| DOW (Dow Inc.) | LYB (LyondellBasell) | |
|---|---|---|
| 1-year return | +29.0% | +19.1% |
| 5-year return | -38.4% | -12.8% |
| Volatility (ann.) | 35.2% | 33.7% |
| Beta vs S&P 500 | 0.62 | 0.42 |
| Max drawdown (3Y) | -62.2% | -55.4% |
| Market cap | $21.9B | $20.4B |
| P/E (trailing) | – | – |
| Dividend yield | 4.62% | 6.58% |
| Sector / category | Materials | Materials |
Year-by-year returns
| Year | DOW | LYB |
|---|---|---|
| 2022 | -6.6% | -1.0% |
| 2023 | +14.7% | +20.7% |
| 2024 | -22.8% | -17.4% |
| 2025 | -37.4% | -36.0% |
| 2026 | +32.6% | +50.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DOW and LYB good diversifiers for each other?
No: a correlation of 0.88 means DOW and LYB tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between DOW and LYB?
The DOW/LYB correlation stands at 0.88 on a 3-year window (1 year: 0.89, 5 years: 0.87), computed from weekly returns as of 2026-08-27.
Is LYB a good diversifier for DOW?
No: a correlation of 0.88 means DOW and LYB tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.88 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/dow-vs-lyb.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/dow-vs-lyb/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: DOW correlations · LYB correlations
