NEM vs XLB: Correlation
Newmont (NEM) and Materials Select Sector SPDR Fund (XLB) show a moderate relationship: their 3-year correlation of weekly returns is 0.57.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NEM and XLB?
On 3 years of weekly data the NEM/XLB correlation comes out at 0.57, moderate. The past 12 months show a tighter link (0.72) than the 3-year average (0.57). The 5-year figure is 0.49, and annualized covariance runs at 407.9 %².
Within NEM's tracked universe of 34 assets, XLB comes in at #17 by 3-year correlation. The last year tells two different stories: NEM led by 67.1 percentage points, +84.7% for NEM against +17.6% for XLB. Across three years, the rolling one-year figure varied moderately, from 0.36 to 0.71. Risk is not evenly split, since NEM carries 2.6 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.
NEM vs XLB: side by side
| NEM (Newmont) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +84.7% | +17.6% |
| 5-year return | +165.9% | +36.9% |
| Volatility (ann.) | 43.0% | 16.7% |
| Beta vs S&P 500 | 0.87 | 0.72 |
| Max drawdown (3Y) | -36.6% | -23.2% |
| Market cap | $139.4B | – |
| P/E (trailing) | 16.6 | – |
| Dividend yield | 0.78% | 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 | NEM | XLB |
|---|---|---|
| 2022 | -20.8% | -12.3% |
| 2023 | -8.8% | +12.5% |
| 2024 | -7.8% | +0.1% |
| 2025 | +172.8% | +9.9% |
| 2026 | +33.1% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLB holds NEM at a 8.02% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are NEM and XLB good diversifiers for each other?
Only partially. A correlation of 0.57 means NEM 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 NEM and XLB?
As of 2026-08-27, the correlation of weekly returns between NEM and XLB is 0.57 over 3 years, 0.72 over 1 year and 0.49 over 5 years.
Is XLB a good diversifier for NEM?
Only partially. A correlation of 0.57 means NEM 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 0.57 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/nem-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/nem-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: NEM correlations · XLB correlations
