SHW vs XLB: Correlation
How closely do Sherwin-Williams (SHW) and Materials Select Sector SPDR Fund (XLB) trade together? Their weekly returns over three years give a correlation of 0.62, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SHW and XLB?
On 3 years of weekly data the SHW/XLB correlation comes out at 0.62, strong. Little has changed lately, as the 1-year reading of 0.55 lands near the 3-year figure. The 5-year figure is 0.63, and annualized covariance runs at 255.0 %².
By 3-year correlation, XLB places #24 of the 60 assets tracked against SHW. The last year tells two different stories: XLB led by 22.7 percentage points, -5.1% for SHW against +17.6% for XLB. The rolling one-year correlation moved between 0.46 and 0.77 over the past three years, a moderate range.
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.
SHW vs XLB: side by side
| SHW (Sherwin-Williams) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -5.1% | +17.6% |
| 5-year return | +18.3% | +36.9% |
| Volatility (ann.) | 24.6% | 16.7% |
| Beta vs S&P 500 | 0.79 | 0.72 |
| Max drawdown (3Y) | -25.7% | -23.2% |
| Market cap | $83.8B | – |
| P/E (trailing) | 31.8 | – |
| Dividend yield | 0.91% | 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 | SHW | XLB |
|---|---|---|
| 2022 | -32.0% | -12.3% |
| 2023 | +32.7% | +12.5% |
| 2024 | +9.9% | +0.1% |
| 2025 | -3.8% | +9.9% |
| 2026 | +7.3% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
SHW represents 4.87% of XLB's portfolio, so part of any move in XLB is SHW itself, and the correlation between them is partly mechanical.
Are SHW and XLB good diversifiers for each other?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SHW and XLB?
The SHW/XLB correlation stands at 0.62 on a 3-year window (1 year: 0.55, 5 years: 0.63), computed from weekly returns as of 2026-08-27.
Is XLB a good diversifier for SHW?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.62 mean?
A reading of 0.62 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/shw-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/shw-vs-xlb/)
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Related comparisons
Hubs: SHW correlations · XLB correlations
