PKG vs XLB: Correlation
How closely do Packaging Corporation of America (PKG) and Materials Select Sector SPDR Fund (XLB) trade together? Their weekly returns over three years give a correlation of 0.63, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PKG and XLB?
Over the past 3 years, PKG and XLB moved with a correlation of 0.63, which is strong. The relationship has been stable: the 1-year correlation (0.64) sits close to the 3-year figure. Over 5 years the correlation is 0.64, and the annualized covariance of weekly returns is 248.6 %².
In PKG's tracked universe of 32 assets, XLB sits right near the top at #3. Neither side won the trailing year by much: +18.5% against +17.6%. Across three years, the rolling one-year figure varied moderately, from 0.46 to 0.79.
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.
PKG vs XLB: side by side
| PKG (Packaging Corporation of America) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +18.5% | +17.6% |
| 5-year return | +86.8% | +36.9% |
| Volatility (ann.) | 23.5% | 16.7% |
| Beta vs S&P 500 | 0.52 | 0.72 |
| Max drawdown (3Y) | -28.4% | -23.2% |
| Market cap | $21.7B | – |
| P/E (trailing) | 31.6 | – |
| Dividend yield | 2.13% | 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 | PKG | XLB |
|---|---|---|
| 2022 | -2.6% | -12.3% |
| 2023 | +31.9% | +12.5% |
| 2024 | +41.7% | +0.1% |
| 2025 | -6.1% | +9.9% |
| 2026 | +19.6% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
PKG represents 2.85% of XLB's portfolio, so part of any move in XLB is PKG itself, and the correlation between them is partly mechanical.
Are PKG and XLB good diversifiers for each other?
To a limited degree. At 0.63 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 PKG and XLB?
As of 2026-08-27, the correlation of weekly returns between PKG and XLB is 0.63 over 3 years, 0.64 over 1 year and 0.64 over 5 years.
Is XLB a good diversifier for PKG?
To a limited degree. At 0.63 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 0.63 mean?
A reading of 0.63 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/pkg-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/pkg-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: PKG correlations · XLB correlations
