EMN vs XLB: Correlation
How closely do Eastman Chemical Company (EMN) and Materials Select Sector SPDR Fund (XLB) trade together? Their weekly returns over three years give a correlation of 0.77, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EMN and XLB?
Over the past 3 years, EMN and XLB moved with a correlation of 0.77, which is strong. Little has changed lately, as the 1-year reading of 0.71 lands near the 3-year figure. Over 5 years the correlation is 0.79, and the annualized covariance of weekly returns is 392.2 %².
Few assets follow EMN as closely as XLB, which ranks #1 of 22 tracked partners. The trailing year gives XLB the advantage: +10.8% versus +17.6%, a 6.8-point spread. One caveat on sizing: EMN is 1.8 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.
EMN vs XLB: side by side
| EMN (Eastman Chemical Company) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +10.8% | +17.6% |
| 5-year return | -22.9% | +36.9% |
| Volatility (ann.) | 30.5% | 16.7% |
| Beta vs S&P 500 | 0.95 | 0.72 |
| Max drawdown (3Y) | -48.4% | -23.2% |
| Market cap | $8.3B | – |
| P/E (trailing) | 18.9 | – |
| Dividend yield | 4.59% | 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 | EMN | XLB |
|---|---|---|
| 2022 | -30.4% | -12.3% |
| 2023 | +14.7% | +12.5% |
| 2024 | +5.1% | +0.1% |
| 2025 | -26.9% | +9.9% |
| 2026 | +16.5% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EMN and XLB good diversifiers for each other?
Somewhat, no more. With 0.77 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between EMN and XLB?
Using weekly returns as of 2026-08-27: 0.77 over 3 years, with 0.71 over the last year and 0.79 over 5 years.
Is XLB a good diversifier for EMN?
Somewhat, no more. With 0.77 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.77 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/emn-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/emn-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: EMN correlations · XLB correlations
