IOSP vs XLB: Correlation
Measured on weekly returns over the past three years, Innospec Inc. (IOSP) and Materials Select Sector SPDR Fund (XLB) carry a correlation of 0.73, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IOSP and XLB?
On 3 years of weekly data the IOSP/XLB correlation comes out at 0.73, strong. The relationship has been stable: the 1-year correlation (0.72) sits close to the 3-year figure. The 5-year figure is 0.67, and annualized covariance runs at 325.6 %².
Few assets follow IOSP as closely as XLB, which ranks #2 of 35 tracked partners. Over the last 12 months XLB came out ahead by 6.3 percentage points (+11.3% against +17.6%). Note the risk asymmetry: IOSP runs 1.6 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.
IOSP vs XLB: side by side
| IOSP (Innospec Inc.) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +11.3% | +17.6% |
| 5-year return | +10.2% | +36.9% |
| Volatility (ann.) | 26.6% | 16.7% |
| Beta vs S&P 500 | 0.94 | 0.72 |
| Max drawdown (3Y) | -48.4% | -23.2% |
| Market cap | $2.3B | – |
| P/E (trailing) | 19.5 | – |
| Dividend yield | 1.87% | 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 | IOSP | XLB |
|---|---|---|
| 2022 | +15.2% | -12.3% |
| 2023 | +21.5% | +12.5% |
| 2024 | -9.6% | +0.1% |
| 2025 | -28.9% | +9.9% |
| 2026 | +26.0% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IOSP and XLB good diversifiers for each other?
Somewhat, no more. With 0.73 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IOSP and XLB?
As of 2026-08-27, the correlation of weekly returns between IOSP and XLB is 0.73 over 3 years, 0.72 over 1 year and 0.67 over 5 years.
Is XLB a good diversifier for IOSP?
Somewhat, no more. With 0.73 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.73 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/iosp-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/iosp-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IOSP correlations · XLB correlations
