SW vs XLB: Correlation
How closely do Smurfit Westrock (SW) 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 SW and XLB?
Across a 3-year window, the weekly returns of SW and XLB correlate at 0.63, strong. Lately the two have moved closer together, with the 1-year correlation at 0.76 versus 0.63 over 3 years. Stretching to 5 years gives 0.59, with an annualized covariance of 424.0 %².
XLB is one of the assets that tracks SW most closely: it ranks #3 out of the 30 assets we track against SW. On 12-month performance XLB holds a 7.9-point edge, +9.7% against +17.6%. The rolling one-year correlation moved between 0.47 and 0.81 over the past three years, a moderate range. One caveat on sizing: SW is 2.4 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
SW vs XLB: side by side
| SW (Smurfit Westrock) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +9.7% | +17.6% |
| 5-year return | +2.6% | +36.9% |
| Volatility (ann.) | 40.1% | 16.7% |
| Beta vs S&P 500 | 0.92 | 0.72 |
| Max drawdown (3Y) | -40.5% | -23.2% |
| Market cap | $25.5B | – |
| P/E (trailing) | 51.7 | – |
| Dividend yield | 3.57% | 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 | SW | XLB |
|---|---|---|
| 2022 | -28.0% | -12.3% |
| 2023 | +14.1% | +12.5% |
| 2024 | +37.6% | +0.1% |
| 2025 | -26.2% | +9.9% |
| 2026 | +29.5% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 3.39% of XLB is SW itself, so the fund partly moves with the stock by construction.
Are SW and XLB good diversifiers for each other?
Only partially. A correlation of 0.63 means SW 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 SW and XLB?
As of 2026-08-27, the correlation of weekly returns between SW and XLB is 0.63 over 3 years, 0.76 over 1 year and 0.59 over 5 years.
Is XLB a good diversifier for SW?
Only partially. A correlation of 0.63 means SW 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 0.63 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/sw-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/sw-vs-xlb/)
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Related comparisons
Hubs: SW correlations · XLB correlations
