UPS vs XLB: Correlation
Measured on weekly returns over the past three years, United Parcel Service (UPS) and Materials Select Sector SPDR Fund (XLB) carry a correlation of 0.51, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are UPS and XLB?
On 3 years of weekly data the UPS/XLB correlation comes out at 0.51, moderate. The relationship has been stable: the 1-year correlation (0.43) sits close to the 3-year figure. The 5-year figure is 0.53, and annualized covariance runs at 252.1 %².
By 3-year correlation, XLB places #15 of the 34 assets tracked against UPS. The trailing year gives UPS the advantage: +28.2% versus +17.6%, a 10.6-point spread. Across three years, the rolling one-year figure varied moderately, from 0.25 to 0.70. Note the risk asymmetry: UPS runs 1.8 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.
UPS vs XLB: side by side
| UPS (United Parcel Service) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +28.2% | +17.6% |
| 5-year return | -31.0% | +36.9% |
| Volatility (ann.) | 29.4% | 16.7% |
| Beta vs S&P 500 | 0.81 | 0.72 |
| Max drawdown (3Y) | -46.5% | -23.2% |
| Market cap | $89.9B | – |
| P/E (trailing) | 19.6 | – |
| Dividend yield | 6.21% | 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 | UPS | XLB |
|---|---|---|
| 2022 | -16.2% | -12.3% |
| 2023 | -6.0% | +12.5% |
| 2024 | -15.9% | +0.1% |
| 2025 | -15.9% | +9.9% |
| 2026 | +11.6% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are UPS and XLB good diversifiers for each other?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between UPS and XLB?
Using weekly returns as of 2026-08-27: 0.51 over 3 years, with 0.43 over the last year and 0.53 over 5 years.
Is XLB a good diversifier for UPS?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.51 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ups-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ups-vs-xlb/)
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Related comparisons
Hubs: UPS correlations · XLB correlations
