NDSN vs XLB: Correlation
Nordson Corporation (NDSN) and Materials Select Sector SPDR Fund (XLB) show a strong relationship: their 3-year correlation of weekly returns is 0.71.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NDSN and XLB?
Across a 3-year window, the weekly returns of NDSN and XLB correlate at 0.71, strong. Little has changed lately, as the 1-year reading of 0.62 lands near the 3-year figure. Stretching to 5 years gives 0.69, with an annualized covariance of 294.9 %².
Within NDSN's tracked universe of 39 assets, XLB comes in at #7 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months NDSN outperformed by 30.9 percentage points (+48.5% for NDSN against +17.6% for XLB). The link looks structural: the rolling one-year correlation barely moved, holding between 0.62 and 0.82.
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.
NDSN vs XLB: side by side
| NDSN (Nordson Corporation) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +48.5% | +17.6% |
| 5-year return | +46.5% | +36.9% |
| Volatility (ann.) | 24.7% | 16.7% |
| Beta vs S&P 500 | 0.97 | 0.72 |
| Max drawdown (3Y) | -39.1% | -23.2% |
| Market cap | $18.4B | – |
| P/E (trailing) | 33.5 | – |
| Dividend yield | 0.98% | 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 | NDSN | XLB |
|---|---|---|
| 2022 | -5.9% | -12.3% |
| 2023 | +12.4% | +12.5% |
| 2024 | -20.1% | +0.1% |
| 2025 | +17.0% | +9.9% |
| 2026 | +38.4% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NDSN and XLB good diversifiers for each other?
Only partially. A correlation of 0.71 means NDSN 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 NDSN and XLB?
Using weekly returns as of 2026-08-27: 0.71 over 3 years, with 0.62 over the last year and 0.69 over 5 years.
Is XLB a good diversifier for NDSN?
Only partially. A correlation of 0.71 means NDSN 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 0.71 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/ndsn-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ndsn-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: NDSN correlations · XLB correlations
