LIN vs XLB: Correlation
Linde plc (LIN) and Materials Select Sector SPDR Fund (XLB) show a strong relationship: their 3-year correlation of weekly returns is 0.64.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LIN and XLB?
On 3 years of weekly data the LIN/XLB correlation comes out at 0.64, strong. The past 12 months show a weaker link (0.47) than the 3-year average (0.64). The 5-year figure is 0.70, and annualized covariance runs at 175.8 %².
In LIN's tracked universe of 36 assets, XLB sits right near the top at #1. The last year tells two different stories: XLB led by 15.7 percentage points, +1.9% for LIN against +17.6% for XLB. On a rolling one-year basis the correlation drifted between 0.47 and 0.84, a moderate band.
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.
LIN vs XLB: side by side
| LIN (Linde plc) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +1.9% | +17.6% |
| 5-year return | +64.6% | +36.9% |
| Volatility (ann.) | 16.5% | 16.7% |
| Beta vs S&P 500 | 0.37 | 0.72 |
| Max drawdown (3Y) | -19.2% | -23.2% |
| Market cap | $223.7B | – |
| P/E (trailing) | 31.6 | – |
| Dividend yield | 1.26% | 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 | LIN | XLB |
|---|---|---|
| 2022 | -4.4% | -12.3% |
| 2023 | +27.7% | +12.5% |
| 2024 | +3.2% | +0.1% |
| 2025 | +3.2% | +9.9% |
| 2026 | +14.6% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 12.94% of XLB is LIN itself, so the fund partly moves with the stock by construction.
Are LIN and XLB good diversifiers for each other?
Only partially. A correlation of 0.64 means LIN 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 LIN and XLB?
As of 2026-08-27, the correlation of weekly returns between LIN and XLB is 0.64 over 3 years, 0.47 over 1 year and 0.70 over 5 years.
Is XLB a good diversifier for LIN?
Only partially. A correlation of 0.64 means LIN 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 0.64 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/lin-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/lin-vs-xlb/)
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Related comparisons
Hubs: LIN correlations · XLB correlations
