MLM vs XLB: Correlation
Measured on weekly returns over the past three years, Martin Marietta Materials (MLM) and Materials Select Sector SPDR Fund (XLB) carry a correlation of 0.61, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MLM and XLB?
Over the past 3 years, MLM and XLB moved with a correlation of 0.61, which is strong. The relationship has been stable: the 1-year correlation (0.63) sits close to the 3-year figure. Over 5 years the correlation is 0.67, and the annualized covariance of weekly returns is 244.6 %².
By 3-year correlation, XLB places #10 of the 36 assets tracked against MLM. The last year tells two different stories: XLB led by 31.4 percentage points, -13.8% for MLM against +17.6% for XLB. Stability stands out here, with the rolling one-year correlation confined to 0.48 through 0.69.
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.
MLM vs XLB: side by side
| MLM (Martin Marietta Materials) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -13.8% | +17.6% |
| 5-year return | +42.4% | +36.9% |
| Volatility (ann.) | 23.9% | 16.7% |
| Beta vs S&P 500 | 0.85 | 0.72 |
| Max drawdown (3Y) | -26.8% | -23.2% |
| Market cap | $37.5B | – |
| P/E (trailing) | 34.4 | – |
| Dividend yield | 0.62% | 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 | MLM | XLB |
|---|---|---|
| 2022 | -22.7% | -12.3% |
| 2023 | +48.6% | +12.5% |
| 2024 | +4.1% | +0.1% |
| 2025 | +21.3% | +9.9% |
| 2026 | -14.9% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
MLM represents 4.09% of XLB's portfolio, so part of any move in XLB is MLM itself, and the correlation between them is partly mechanical.
Are MLM and XLB good diversifiers for each other?
Only partially. A correlation of 0.61 means MLM 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 MLM and XLB?
Using weekly returns as of 2026-08-27: 0.61 over 3 years, with 0.63 over the last year and 0.67 over 5 years.
Is XLB a good diversifier for MLM?
Only partially. A correlation of 0.61 means MLM 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 0.61 mean?
A reading of 0.61 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
$ curl https://www.pairbook.io/api/v1/pairs/mlm-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/mlm-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MLM correlations · XLB correlations
