OTIS vs XLB: Correlation
Measured on weekly returns over the past three years, Otis Worldwide (OTIS) and Materials Select Sector SPDR Fund (XLB) carry a correlation of 0.54, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are OTIS and XLB?
Across a 3-year window, the weekly returns of OTIS and XLB correlate at 0.54, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.42 versus 0.54 over 3 years. Stretching to 5 years gives 0.65, with an annualized covariance of 172.6 %².
Within OTIS's tracked universe of 31 assets, XLB comes in at #10 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLB outperformed by 34.4 percentage points (-16.8% for OTIS against +17.6% for XLB). Across three years, the rolling one-year figure varied moderately, from 0.38 to 0.83.
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.
OTIS vs XLB: side by side
| OTIS (Otis Worldwide) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -16.8% | +17.6% |
| 5-year return | -15.9% | +36.9% |
| Volatility (ann.) | 19.1% | 16.7% |
| Beta vs S&P 500 | 0.59 | 0.72 |
| Max drawdown (3Y) | -32.4% | -23.2% |
| Market cap | $27.2B | – |
| P/E (trailing) | 18.4 | – |
| Dividend yield | 2.35% | 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 | OTIS | XLB |
|---|---|---|
| 2022 | -8.8% | -12.3% |
| 2023 | +16.0% | +12.5% |
| 2024 | +5.2% | +0.1% |
| 2025 | -4.0% | +9.9% |
| 2026 | -16.8% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are OTIS and XLB good diversifiers for each other?
Only partially. A correlation of 0.54 means OTIS 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 OTIS and XLB?
The OTIS/XLB correlation stands at 0.54 on a 3-year window (1 year: 0.42, 5 years: 0.65), computed from weekly returns as of 2026-08-27.
Is XLB a good diversifier for OTIS?
Only partially. A correlation of 0.54 means OTIS 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 0.54 mean?
On the −1 to +1 scale, 0.54 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/otis-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/otis-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: OTIS correlations · XLB correlations
