AES vs XLU: Correlation
Measured on weekly returns over the past three years, AES Corporation (AES) and Utilities Select Sector SPDR Fund (XLU) carry a correlation of 0.48, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AES and XLU?
Across a 3-year window, the weekly returns of AES and XLU correlate at 0.48, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.32 versus 0.48 over 3 years. Stretching to 5 years gives 0.55, with an annualized covariance of 308.8 %².
Within AES's tracked universe of 31 assets, XLU comes in at #15 by 3-year correlation. Over the last 12 months AES came out ahead by 11.8 percentage points (+15.9% against +4.1%). Across three years, the rolling one-year figure varied moderately, from 0.31 to 0.76. One caveat on sizing: AES is 2.6 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.
AES vs XLU: side by side
| AES (AES Corporation) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +15.9% | +4.1% |
| 5-year return | -25.1% | +46.3% |
| Volatility (ann.) | 40.5% | 15.8% |
| Beta vs S&P 500 | 0.86 | 0.26 |
| Max drawdown (3Y) | -53.3% | -13.1% |
| Market cap | $10.5B | – |
| P/E (trailing) | 5.5 | – |
| Dividend yield | 4.78% | 2.70% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $23.1B |
| Sector / category | Utilities | Sector ETF |
XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Year-by-year returns
| Year | AES | XLU |
|---|---|---|
| 2022 | +21.7% | +1.4% |
| 2023 | -30.9% | -7.2% |
| 2024 | -30.4% | +23.3% |
| 2025 | +18.3% | +16.0% |
| 2026 | +6.6% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLU holds AES at a 0.77% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are AES and XLU good diversifiers for each other?
Reasonably. At 0.48, AES and XLU keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between AES and XLU?
Using weekly returns as of 2026-08-27: 0.48 over 3 years, with 0.32 over the last year and 0.55 over 5 years.
Is XLU a good diversifier for AES?
Reasonably. At 0.48, AES and XLU keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.48 mean?
A reading of 0.48 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/aes-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/aes-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: AES correlations · XLU correlations
