APA vs XLE: Correlation
APA Corporation (APA) and Energy Select Sector SPDR Fund (XLE) show a very strong relationship: their 3-year correlation of weekly returns is 0.83.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are APA and XLE?
Over the past 3 years, APA and XLE moved with a correlation of 0.83, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.84 over 1 year against 0.83 over 3. Over 5 years the correlation is 0.85, and the annualized covariance of weekly returns is 795.5 %².
XLE is one of the assets that tracks APA most closely: it ranks #2 out of the 43 assets we track against APA. Correlation aside, the last 12 months split them widely, with APA ahead by 50.1 points (+94.1% versus +44.0%). The link looks structural: the rolling one-year correlation barely moved, holding between 0.73 and 0.90. One caveat on sizing: APA is 1.8 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.
APA vs XLE: side by side
| APA (APA Corporation) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +94.1% | +44.0% |
| 5-year return | +164.2% | +206.7% |
| Volatility (ann.) | 41.8% | 23.1% |
| Beta vs S&P 500 | 0.38 | 0.27 |
| Max drawdown (3Y) | -67.4% | -20.1% |
| Market cap | $14.8B | – |
| P/E (trailing) | 8.7 | – |
| Dividend yield | 2.43% | 2.55% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $39.2B |
| Sector / category | Energy | Sector ETF |
XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Year-by-year returns
| Year | APA | XLE |
|---|---|---|
| 2022 | +76.4% | +64.3% |
| 2023 | -21.2% | -0.6% |
| 2024 | -33.4% | +5.6% |
| 2025 | +11.5% | +7.9% |
| 2026 | +77.3% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLE holds APA at a 0.86% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are APA and XLE good diversifiers for each other?
No: a correlation of 0.83 means APA and XLE tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between APA and XLE?
Using weekly returns as of 2026-08-27: 0.83 over 3 years, with 0.84 over the last year and 0.85 over 5 years.
Is XLE a good diversifier for APA?
No: a correlation of 0.83 means APA and XLE tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.83 mean?
On the −1 to +1 scale, 0.83 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/apa-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/apa-vs-xle/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: APA correlations · XLE correlations
