LYB vs XLB: Correlation
LyondellBasell (LYB) and Materials Select Sector SPDR Fund (XLB) show a moderate relationship: their 3-year correlation of weekly returns is 0.40.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LYB and XLB?
Across a 3-year window, the weekly returns of LYB and XLB correlate at 0.40, moderate. The link has loosened recently: the 1-year correlation (0.10) runs below the 3-year figure (0.40). Stretching to 5 years gives 0.53, with an annualized covariance of 226.9 %².
Among the 36 assets we track against LYB, XLB ranks #18 by 3-year correlation. Neither side won the trailing year by much: +19.1% against +17.6%. This link changes with the market regime, having swung between 0.13 and 0.80 on a rolling one-year basis. Risk is not evenly split, since LYB carries 2.0 times the volatility of the other side.
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.
LYB vs XLB: side by side
| LYB (LyondellBasell) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +19.1% | +17.6% |
| 5-year return | -12.8% | +36.9% |
| Volatility (ann.) | 33.7% | 16.7% |
| Beta vs S&P 500 | 0.42 | 0.72 |
| Max drawdown (3Y) | -55.4% | -23.2% |
| Market cap | $20.4B | – |
| P/E (trailing) | – | – |
| Dividend yield | 6.58% | 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 | LYB | XLB |
|---|---|---|
| 2022 | -1.0% | -12.3% |
| 2023 | +20.7% | +12.5% |
| 2024 | -17.4% | +0.1% |
| 2025 | -36.0% | +9.9% |
| 2026 | +50.5% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 2.11% of XLB is LYB itself, so the fund partly moves with the stock by construction.
Are LYB and XLB good diversifiers for each other?
A fair diversifier. At 0.40, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between LYB and XLB?
As of 2026-08-27, the correlation of weekly returns between LYB and XLB is 0.40 over 3 years, 0.10 over 1 year and 0.53 over 5 years.
Is XLB a good diversifier for LYB?
A fair diversifier. At 0.40, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.40 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/lyb-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/lyb-vs-xlb/)
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Related comparisons
Hubs: LYB correlations · XLB correlations
