PPG vs XLB: Correlation
Measured on weekly returns over the past three years, PPG Industries (PPG) and Materials Select Sector SPDR Fund (XLB) carry a correlation of 0.78, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PPG and XLB?
Over the past 3 years, PPG and XLB moved with a correlation of 0.78, which is strong. The relationship has been stable: the 1-year correlation (0.80) sits close to the 3-year figure. Over 5 years the correlation is 0.77, and the annualized covariance of weekly returns is 334.8 %².
XLB is one of the assets that tracks PPG most closely: it ranks #1 out of the 67 assets we track against PPG. The trailing year gives XLB the advantage: +3.8% versus +17.6%, a 13.8-point spread. The link looks structural: the rolling one-year correlation barely moved, holding between 0.70 and 0.85. Note the risk asymmetry: PPG runs 1.5 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.
PPG vs XLB: side by side
| PPG (PPG Industries) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +3.8% | +17.6% |
| 5-year return | -22.0% | +36.9% |
| Volatility (ann.) | 25.5% | 16.7% |
| Beta vs S&P 500 | 0.90 | 0.72 |
| Max drawdown (3Y) | -37.4% | -23.2% |
| Market cap | $25.2B | – |
| P/E (trailing) | 16.4 | – |
| Dividend yield | 2.48% | 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 | PPG | XLB |
|---|---|---|
| 2022 | -25.7% | -12.3% |
| 2023 | +21.2% | +12.5% |
| 2024 | -18.5% | +0.1% |
| 2025 | -12.0% | +9.9% |
| 2026 | +12.8% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
PPG represents 3.32% of XLB's portfolio, so part of any move in XLB is PPG itself, and the correlation between them is partly mechanical.
Are PPG and XLB good diversifiers for each other?
Only partially. A correlation of 0.78 means PPG 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 PPG and XLB?
As of 2026-08-27, the correlation of weekly returns between PPG and XLB is 0.78 over 3 years, 0.80 over 1 year and 0.77 over 5 years.
Is XLB a good diversifier for PPG?
Only partially. A correlation of 0.78 means PPG 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 0.78 mean?
On the −1 to +1 scale, 0.78 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/ppg-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ppg-vs-xlb/)
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Related comparisons
Hubs: PPG correlations · XLB correlations
