MLM vs XLI: Correlation
Measured on weekly returns over the past three years, Martin Marietta Materials (MLM) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of 0.64, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MLM and XLI?
On 3 years of weekly data the MLM/XLI correlation comes out at 0.64, strong. Little has changed lately, as the 1-year reading of 0.66 lands near the 3-year figure. The 5-year figure is 0.68, and annualized covariance runs at 239.6 %².
Within MLM's tracked universe of 36 assets, XLI comes in at #5 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLI outperformed by 32.1 percentage points (-13.8% for MLM against +18.3% for XLI). The rolling one-year correlation stayed in a tight band between 0.50 and 0.73 over the past three years, which points to a structural rather than episodic relationship. Risk is not evenly split, since MLM carries 1.5 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.
MLM vs XLI: side by side
| MLM (Martin Marietta Materials) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -13.8% | +18.3% |
| 5-year return | +42.4% | +84.0% |
| Volatility (ann.) | 23.9% | 15.7% |
| Beta vs S&P 500 | 0.85 | 0.89 |
| Max drawdown (3Y) | -26.8% | -18.5% |
| Market cap | $37.5B | – |
| P/E (trailing) | 34.4 | – |
| Dividend yield | 0.62% | 1.15% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $32.9B |
| Sector / category | Materials | Sector ETF |
XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Year-by-year returns
| Year | MLM | XLI |
|---|---|---|
| 2022 | -22.7% | -5.6% |
| 2023 | +48.6% | +18.1% |
| 2024 | +4.1% | +17.3% |
| 2025 | +21.3% | +19.3% |
| 2026 | -14.9% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MLM and XLI good diversifiers for each other?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between MLM and XLI?
Using weekly returns as of 2026-08-27: 0.64 over 3 years, with 0.66 over the last year and 0.68 over 5 years.
Is XLI a good diversifier for MLM?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.64 mean?
On the −1 to +1 scale, 0.64 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/mlm-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/mlm-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MLM correlations · XLI correlations
