SWK vs XLB: Correlation
Measured on weekly returns over the past three years, Stanley Black & Decker (SWK) and Materials Select Sector SPDR Fund (XLB) carry a correlation of 0.70, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SWK and XLB?
Across a 3-year window, the weekly returns of SWK and XLB correlate at 0.70, strong. Little has changed lately, as the 1-year reading of 0.69 lands near the 3-year figure. Stretching to 5 years gives 0.63, with an annualized covariance of 415.8 %².
By 3-year correlation, XLB places #4 of the 55 assets tracked against SWK. Correlation aside, the last 12 months split them widely, with SWK ahead by 19.4 points (+37.0% versus +17.6%). The rolling one-year correlation stayed in a tight band between 0.63 and 0.78 over the past three years, which points to a structural rather than episodic relationship. Note the risk asymmetry: SWK runs 2.1 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.
SWK vs XLB: side by side
| SWK (Stanley Black & Decker) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +37.0% | +17.6% |
| 5-year return | -39.1% | +36.9% |
| Volatility (ann.) | 35.4% | 16.7% |
| Beta vs S&P 500 | 1.19 | 0.72 |
| Max drawdown (3Y) | -48.3% | -23.2% |
| Market cap | $15.0B | – |
| P/E (trailing) | 24.4 | – |
| Dividend yield | 3.33% | 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 | SWK | XLB |
|---|---|---|
| 2022 | -58.9% | -12.3% |
| 2023 | +35.6% | +12.5% |
| 2024 | -15.2% | +0.1% |
| 2025 | -3.2% | +9.9% |
| 2026 | +36.5% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SWK and XLB good diversifiers for each other?
To a limited degree. At 0.70 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 SWK and XLB?
Using weekly returns as of 2026-08-27: 0.70 over 3 years, with 0.69 over the last year and 0.63 over 5 years.
Is XLB a good diversifier for SWK?
To a limited degree. At 0.70 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 0.70 mean?
On the −1 to +1 scale, 0.70 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/swk-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/swk-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: SWK correlations · XLB correlations
