FCX vs XLB: Correlation
Measured on weekly returns over the past three years, Freeport-McMoRan (FCX) and Materials Select Sector SPDR Fund (XLB) carry a correlation of 0.68, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FCX and XLB?
Across a 3-year window, the weekly returns of FCX and XLB correlate at 0.68, strong. Little has changed lately, as the 1-year reading of 0.61 lands near the 3-year figure. Stretching to 5 years gives 0.72, with an annualized covariance of 489.3 %².
Among the 34 assets we track against FCX, XLB ranks #6 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months FCX outperformed by 63.1 percentage points (+80.7% for FCX against +17.6% for XLB). The rolling one-year correlation moved between 0.58 and 0.90 over the past three years, a moderate range. Note the risk asymmetry: FCX runs 2.6 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.
FCX vs XLB: side by side
| FCX (Freeport-McMoRan) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +80.7% | +17.6% |
| 5-year return | +129.3% | +36.9% |
| Volatility (ann.) | 43.2% | 16.7% |
| Beta vs S&P 500 | 1.55 | 0.72 |
| Max drawdown (3Y) | -46.3% | -23.2% |
| Market cap | $112.6B | – |
| P/E (trailing) | 38.8 | – |
| Dividend yield | 0.76% | 1.68% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.3B |
| Sector / category | Materials | 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 | FCX | XLB |
|---|---|---|
| 2022 | -7.3% | -12.3% |
| 2023 | +13.7% | +12.5% |
| 2024 | -9.4% | +0.1% |
| 2025 | +35.4% | +9.9% |
| 2026 | +55.5% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLB holds FCX at a 6.48% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are FCX and XLB good diversifiers for each other?
To a limited degree. At 0.68 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 FCX and XLB?
The FCX/XLB correlation stands at 0.68 on a 3-year window (1 year: 0.61, 5 years: 0.72), computed from weekly returns as of 2026-08-27.
Is XLB a good diversifier for FCX?
To a limited degree. At 0.68 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 0.68 mean?
A reading of 0.68 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/fcx-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/fcx-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: FCX correlations · XLB correlations
