FMC vs XLB: Correlation
How closely do FMC Corporation (FMC) and Materials Select Sector SPDR Fund (XLB) trade together? Their weekly returns over three years give a correlation of 0.49, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FMC and XLB?
Across a 3-year window, the weekly returns of FMC and XLB correlate at 0.49, moderate. The relationship has been stable: the 1-year correlation (0.51) sits close to the 3-year figure. Stretching to 5 years gives 0.48, with an annualized covariance of 462.9 %².
XLB is one of the assets that tracks FMC most closely: it ranks #2 out of the 14 assets we track against FMC. Correlation aside, the last 12 months split them widely, with XLB ahead by 89.8 points (-72.2% versus +17.6%). Note the risk asymmetry: FMC runs 3.4 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.
FMC vs XLB: side by side
| FMC (FMC Corporation) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -72.2% | +17.6% |
| 5-year return | -86.6% | +36.9% |
| Volatility (ann.) | 56.2% | 16.7% |
| Beta vs S&P 500 | 0.82 | 0.72 |
| Max drawdown (3Y) | -87.3% | -23.2% |
| Market cap | $1.3B | – |
| P/E (trailing) | – | – |
| Dividend yield | 7.40% | 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 | FMC | XLB |
|---|---|---|
| 2022 | +15.7% | -12.3% |
| 2023 | -48.0% | +12.5% |
| 2024 | -19.7% | +0.1% |
| 2025 | -70.0% | +9.9% |
| 2026 | -22.2% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FMC and XLB good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.49 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between FMC and XLB?
As of 2026-08-27, the correlation of weekly returns between FMC and XLB is 0.49 over 3 years, 0.51 over 1 year and 0.48 over 5 years.
Is XLB a good diversifier for FMC?
Yes, to a useful degree: a correlation of 0.49 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.49 mean?
A reading of 0.49 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
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Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/fmc-vs-xlb/)
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Related comparisons
Hubs: FMC correlations · XLB correlations
