NUE vs XLB: Correlation
Nucor (NUE) 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 NUE and XLB?
Across a 3-year window, the weekly returns of NUE and XLB correlate at 0.57, moderate. The past 12 months show a weaker link (0.27) than the 3-year average (0.57). Stretching to 5 years gives 0.64, with an annualized covariance of 319.8 %².
Within NUE's tracked universe of 34 assets, XLB comes in at #14 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months NUE outperformed by 52.5 percentage points (+70.1% for NUE against +17.6% for XLB). On a rolling one-year basis the correlation drifted between 0.32 and 0.82, a moderate band. Note the risk asymmetry: NUE runs 2.0 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.
NUE vs XLB: side by side
| NUE (Nucor) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +70.1% | +17.6% |
| 5-year return | +124.6% | +36.9% |
| Volatility (ann.) | 33.3% | 16.7% |
| Beta vs S&P 500 | 1.08 | 0.72 |
| Max drawdown (3Y) | -47.8% | -23.2% |
| Market cap | $57.3B | – |
| P/E (trailing) | 20.1 | – |
| Dividend yield | 0.88% | 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 | NUE | XLB |
|---|---|---|
| 2022 | +17.4% | -12.3% |
| 2023 | +33.8% | +12.5% |
| 2024 | -32.0% | +0.1% |
| 2025 | +42.0% | +9.9% |
| 2026 | +55.6% | +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 NUE at a 4.28% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are NUE and XLB good diversifiers for each other?
To a limited degree. At 0.57 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between NUE and XLB?
Using weekly returns as of 2026-08-27: 0.57 over 3 years, with 0.27 over the last year and 0.64 over 5 years.
Is XLB a good diversifier for NUE?
To a limited degree. At 0.57 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
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/nue-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/nue-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: NUE correlations · XLB correlations
