NGVT vs XLB: Correlation
How closely do Ingevity Corporation (NGVT) and Materials Select Sector SPDR Fund (XLB) trade together? Their weekly returns over three years give a correlation of 0.64, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NGVT and XLB?
On 3 years of weekly data the NGVT/XLB correlation comes out at 0.64, strong. Recent behaviour matches the longer record: 0.68 over 1 year against 0.64 over 3. The 5-year figure is 0.62, and annualized covariance runs at 524.2 %².
Within NGVT's tracked universe of 23 assets, XLB comes in at #4 by 3-year correlation. Twelve-month performance is nearly a tie, at +21.5% for NGVT and +17.6% for XLB. Note the risk asymmetry: NGVT runs 2.9 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.
NGVT vs XLB: side by side
| NGVT (Ingevity Corporation) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.5% | +17.6% |
| 5-year return | -14.1% | +36.9% |
| Volatility (ann.) | 48.8% | 16.7% |
| Beta vs S&P 500 | 1.39 | 0.72 |
| Max drawdown (3Y) | -45.8% | -23.2% |
| Market cap | $2.4B | – |
| P/E (trailing) | 98.2 | – |
| Dividend yield | 0.00% | 1.68% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.3B |
| Sector / category | US Listed | 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 | NGVT | XLB |
|---|---|---|
| 2022 | -1.8% | -12.3% |
| 2023 | -33.0% | +12.5% |
| 2024 | -13.7% | +0.1% |
| 2025 | +45.2% | +9.9% |
| 2026 | +17.8% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NGVT and XLB good diversifiers for each other?
Only partially. A correlation of 0.64 means NGVT 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 NGVT and XLB?
The NGVT/XLB correlation stands at 0.64 on a 3-year window (1 year: 0.68, 5 years: 0.62), computed from weekly returns as of 2026-08-27.
Is XLB a good diversifier for NGVT?
Only partially. A correlation of 0.64 means NGVT 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 0.64 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/ngvt-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ngvt-vs-xlb/)
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Related comparisons
Hubs: NGVT correlations · XLB correlations
