AQN vs XLU: Correlation
Algonquin Power & Utilities Corp. (AQN) and Utilities Select Sector SPDR Fund (XLU) show a strong relationship: their 3-year correlation of weekly returns is 0.60.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AQN and XLU?
Over the past 3 years, AQN and XLU moved with a correlation of 0.60, which is strong. Recent behaviour matches the longer record: 0.54 over 1 year against 0.60 over 3. Over 5 years the correlation is 0.54, and the annualized covariance of weekly returns is 294.8 %².
XLU is one of the assets that tracks AQN most closely: it ranks #2 out of the 12 assets we track against AQN. Twelve-month performance is nearly a tie, at -0.1% for AQN and +4.1% for XLU. One caveat on sizing: AQN is 2.0 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.
AQN vs XLU: side by side
| AQN (Algonquin Power & Utilities Corp.) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -0.1% | +4.1% |
| 5-year return | -52.8% | +46.3% |
| Volatility (ann.) | 31.1% | 15.8% |
| Beta vs S&P 500 | 0.42 | 0.26 |
| Max drawdown (3Y) | -38.7% | -13.1% |
| Market cap | $4.4B | – |
| P/E (trailing) | 23.7 | – |
| Dividend yield | 4.55% | 2.70% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $23.1B |
| Sector / category | US Listed | 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 | AQN | XLU |
|---|---|---|
| 2022 | -51.7% | +1.4% |
| 2023 | +3.0% | -7.2% |
| 2024 | -25.0% | +23.3% |
| 2025 | +41.6% | +16.0% |
| 2026 | -5.6% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AQN and XLU good diversifiers for each other?
To a limited degree. At 0.60 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 AQN and XLU?
The AQN/XLU correlation stands at 0.60 on a 3-year window (1 year: 0.54, 5 years: 0.54), computed from weekly returns as of 2026-08-27.
Is XLU a good diversifier for AQN?
To a limited degree. At 0.60 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 0.60 mean?
A reading of 0.60 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/aqn-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/aqn-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: AQN correlations · XLU correlations
