VMC vs XLB: Correlation
Measured on weekly returns over the past three years, Vulcan Materials Company (VMC) and Materials Select Sector SPDR Fund (XLB) carry a correlation of 0.58, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VMC and XLB?
Across a 3-year window, the weekly returns of VMC and XLB correlate at 0.58, moderate. Little has changed lately, as the 1-year reading of 0.63 lands near the 3-year figure. Stretching to 5 years gives 0.62, with an annualized covariance of 242.8 %².
By 3-year correlation, XLB places #13 of the 34 assets tracked against VMC. Correlation aside, the last 12 months split them widely, with XLB ahead by 22.8 points (-5.2% versus +17.6%). The rolling one-year correlation moved between 0.40 and 0.66 over the past three years, a moderate range. Risk is not evenly split, since VMC carries 1.5 times the volatility of the other side.
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.
VMC vs XLB: side by side
| VMC (Vulcan Materials Company) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -5.2% | +17.6% |
| 5-year return | +53.2% | +36.9% |
| Volatility (ann.) | 25.2% | 16.7% |
| Beta vs S&P 500 | 0.82 | 0.72 |
| Max drawdown (3Y) | -24.4% | -23.2% |
| Market cap | $35.5B | – |
| P/E (trailing) | 32.3 | – |
| Dividend yield | 0.74% | 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 | VMC | XLB |
|---|---|---|
| 2022 | -14.9% | -12.3% |
| 2023 | +30.8% | +12.5% |
| 2024 | +14.1% | +0.1% |
| 2025 | +11.7% | +9.9% |
| 2026 | -3.4% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLB holds VMC at a 4.26% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are VMC and XLB good diversifiers for each other?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between VMC and XLB?
Using weekly returns as of 2026-08-27: 0.58 over 3 years, with 0.63 over the last year and 0.62 over 5 years.
Is XLB a good diversifier for VMC?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.58 mean?
A reading of 0.58 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/vmc-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/vmc-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VMC correlations · XLB correlations
