TXT vs XLB: Correlation
Measured on weekly returns over the past three years, Textron (TXT) and Materials Select Sector SPDR Fund (XLB) carry a correlation of 0.62, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TXT and XLB?
On 3 years of weekly data the TXT/XLB correlation comes out at 0.62, strong. Lately the two have drifted apart, with the 1-year correlation at 0.50 versus 0.62 over 3 years. The 5-year figure is 0.67, and annualized covariance runs at 263.6 %².
By 3-year correlation, XLB places #12 of the 39 assets tracked against TXT. Correlation aside, the last 12 months split them widely, with XLB ahead by 16.9 points (+0.7% versus +17.6%). The rolling one-year correlation moved between 0.48 and 0.83 over the past three years, a moderate range. One caveat on sizing: TXT is 1.5 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.
TXT vs XLB: side by side
| TXT (Textron) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +0.7% | +17.6% |
| 5-year return | +15.1% | +36.9% |
| Volatility (ann.) | 25.4% | 16.7% |
| Beta vs S&P 500 | 0.89 | 0.72 |
| Max drawdown (3Y) | -37.3% | -23.2% |
| Market cap | $14.2B | – |
| P/E (trailing) | 15.7 | – |
| Dividend yield | 0.10% | 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 | TXT | XLB |
|---|---|---|
| 2022 | -8.2% | -12.3% |
| 2023 | +13.7% | +12.5% |
| 2024 | -4.8% | +0.1% |
| 2025 | +14.1% | +9.9% |
| 2026 | -5.5% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TXT and XLB good diversifiers for each other?
To a limited degree. At 0.62 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 TXT and XLB?
The TXT/XLB correlation stands at 0.62 on a 3-year window (1 year: 0.50, 5 years: 0.67), computed from weekly returns as of 2026-08-27.
Is XLB a good diversifier for TXT?
To a limited degree. At 0.62 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 0.62 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/txt-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/txt-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: TXT correlations · XLB correlations
