AWK vs XLU: Correlation
Measured on weekly returns over the past three years, American Water Works (AWK) and Utilities Select Sector SPDR Fund (XLU) carry a correlation of 0.56, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AWK and XLU?
Across a 3-year window, the weekly returns of AWK and XLU correlate at 0.56, moderate. Recent behaviour matches the longer record: 0.51 over 1 year against 0.56 over 3. Stretching to 5 years gives 0.70, with an annualized covariance of 182.4 %².
By 3-year correlation, XLU places #17 of the 49 assets tracked against AWK. Over the last 12 months XLU came out ahead by 7.1 percentage points (-3.0% against +4.1%). The relationship is regime-dependent: the rolling one-year correlation swung between 0.12 and 0.83 over the past three years, so this pair behaves very differently depending on the market environment.
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.
AWK vs XLU: side by side
| AWK (American Water Works) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -3.0% | +4.1% |
| 5-year return | -16.6% | +46.3% |
| Volatility (ann.) | 20.7% | 15.8% |
| Beta vs S&P 500 | -0.11 | 0.26 |
| Max drawdown (3Y) | -18.8% | -13.1% |
| Market cap | $27.2B | – |
| P/E (trailing) | 23.7 | – |
| Dividend yield | 2.46% | 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 | AWK | XLU |
|---|---|---|
| 2022 | -17.9% | +1.4% |
| 2023 | -11.7% | -7.2% |
| 2024 | -3.5% | +23.3% |
| 2025 | +7.4% | +16.0% |
| 2026 | +6.9% | +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 AWK at a 1.98% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are AWK and XLU good diversifiers for each other?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between AWK and XLU?
The AWK/XLU correlation stands at 0.56 on a 3-year window (1 year: 0.51, 5 years: 0.70), computed from weekly returns as of 2026-08-27.
Is XLU a good diversifier for AWK?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.56 mean?
A reading of 0.56 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/awk-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/awk-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: AWK correlations · XLU correlations
