GTES vs XLB: Correlation
Measured on weekly returns over the past three years, Gates Industrial Corporation Ltd. (GTES) and Materials Select Sector SPDR Fund (XLB) carry a correlation of 0.67, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are GTES and XLB?
Over the past 3 years, GTES and XLB moved with a correlation of 0.67, which is strong. Recent behaviour matches the longer record: 0.65 over 1 year against 0.67 over 3. Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 390.6 %².
Few assets follow GTES as closely as XLB, which ranks #3 of 22 tracked partners. The last year tells two different stories: XLB led by 16.1 percentage points, +1.5% for GTES against +17.6% for XLB. Note the risk asymmetry: GTES runs 2.1 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.
GTES vs XLB: side by side
| GTES (Gates Industrial Corporation Ltd.) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +1.5% | +17.6% |
| 5-year return | +56.6% | +36.9% |
| Volatility (ann.) | 35.0% | 16.7% |
| Beta vs S&P 500 | 1.27 | 0.72 |
| Max drawdown (3Y) | -33.8% | -23.2% |
| Market cap | $6.7B | – |
| P/E (trailing) | 18.8 | – |
| Dividend yield | 0.00% | 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 | GTES | XLB |
|---|---|---|
| 2022 | -28.3% | -12.3% |
| 2023 | +17.6% | +12.5% |
| 2024 | +53.3% | +0.1% |
| 2025 | +4.4% | +9.9% |
| 2026 | +22.9% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are GTES and XLB good diversifiers for each other?
Only partially. A correlation of 0.67 means GTES and XLB share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between GTES and XLB?
As of 2026-08-27, the correlation of weekly returns between GTES and XLB is 0.67 over 3 years, 0.65 over 1 year and 0.65 over 5 years.
Is XLB a good diversifier for GTES?
Only partially. A correlation of 0.67 means GTES and XLB share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.67 mean?
On the −1 to +1 scale, 0.67 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/gtes-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/gtes-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: GTES correlations · XLB correlations
