ATO vs XLU: Correlation
How closely do Atmos Energy (ATO) and Utilities Select Sector SPDR Fund (XLU) trade together? Their weekly returns over three years give a correlation of 0.71, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ATO and XLU?
Across a 3-year window, the weekly returns of ATO and XLU correlate at 0.71, strong. Lately the two have moved closer together, with the 1-year correlation at 0.83 versus 0.71 over 3 years. Stretching to 5 years gives 0.78, with an annualized covariance of 178.3 %².
Among the 32 assets we track against ATO, XLU ranks #10 by 3-year correlation. Neither side won the trailing year by much: +2.9% against +4.1%. Across three years, the rolling one-year figure varied moderately, from 0.56 to 0.85.
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.
ATO vs XLU: side by side
| ATO (Atmos Energy) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +2.9% | +4.1% |
| 5-year return | +94.1% | +46.3% |
| Volatility (ann.) | 15.9% | 15.8% |
| Beta vs S&P 500 | 0.15 | 0.26 |
| Max drawdown (3Y) | -12.7% | -13.1% |
| Market cap | $28.3B | – |
| P/E (trailing) | 19.9 | – |
| Dividend yield | 2.28% | 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 | ATO | XLU |
|---|---|---|
| 2022 | +9.6% | +1.4% |
| 2023 | +6.2% | -7.2% |
| 2024 | +23.4% | +23.3% |
| 2025 | +23.1% | +16.0% |
| 2026 | +1.5% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
ATO represents 2.08% of XLU's portfolio, so part of any move in XLU is ATO itself, and the correlation between them is partly mechanical.
Are ATO and XLU good diversifiers for each other?
Only partially. A correlation of 0.71 means ATO and XLU share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between ATO and XLU?
The ATO/XLU correlation stands at 0.71 on a 3-year window (1 year: 0.83, 5 years: 0.78), computed from weekly returns as of 2026-08-27.
Is XLU a good diversifier for ATO?
Only partially. A correlation of 0.71 means ATO and XLU share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.71 mean?
On the −1 to +1 scale, 0.71 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/ato-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ato-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ATO correlations · XLU correlations
