MMM vs XLB: Correlation
Measured on weekly returns over the past three years, 3M (MMM) and Materials Select Sector SPDR Fund (XLB) carry a correlation of 0.56, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MMM and XLB?
Over the past 3 years, MMM and XLB moved with a correlation of 0.56, which is moderate. Little has changed lately, as the 1-year reading of 0.56 lands near the 3-year figure. Over 5 years the correlation is 0.60, and the annualized covariance of weekly returns is 278.4 %².
By 3-year correlation, XLB places #12 of the 34 assets tracked against MMM. Neither side won the trailing year by much: +16.4% against +17.6%. The rolling one-year correlation moved between 0.38 and 0.74 over the past three years, a moderate range. Note the risk asymmetry: MMM runs 1.8 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.
MMM vs XLB: side by side
| MMM (3M) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +16.4% | +17.6% |
| 5-year return | +29.9% | +36.9% |
| Volatility (ann.) | 29.8% | 16.7% |
| Beta vs S&P 500 | 0.89 | 0.72 |
| Max drawdown (3Y) | -20.7% | -23.2% |
| Market cap | $92.2B | – |
| P/E (trailing) | 31.9 | – |
| Dividend yield | 1.68% | 1.68% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.3B |
| Sector / category | Industrials | 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 | MMM | XLB |
|---|---|---|
| 2022 | -29.6% | -12.3% |
| 2023 | -3.3% | +12.5% |
| 2024 | +46.1% | +0.1% |
| 2025 | +26.4% | +9.9% |
| 2026 | +13.3% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MMM and XLB good diversifiers for each other?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between MMM and XLB?
As of 2026-08-27, the correlation of weekly returns between MMM and XLB is 0.56 over 3 years, 0.56 over 1 year and 0.60 over 5 years.
Is XLB a good diversifier for MMM?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.56 mean?
On the −1 to +1 scale, 0.56 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/mmm-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/mmm-vs-xlb/)
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Related comparisons
Hubs: MMM correlations · XLB correlations
