BKR vs XLE: Correlation
Measured on weekly returns over the past three years, Baker Hughes (BKR) and Energy Select Sector SPDR Fund (XLE) carry a correlation of 0.65, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BKR and XLE?
On 3 years of weekly data the BKR/XLE correlation comes out at 0.65, strong. The past 12 months show a weaker link (0.53) than the 3-year average (0.65). The 5-year figure is 0.70, and annualized covariance runs at 484.9 %².
Among the 30 assets we track against BKR, XLE ranks #8 by 3-year correlation. Their 12-month results are close: +40.9% for BKR against +44.0% for XLE. On a rolling one-year basis the correlation drifted between 0.54 and 0.85, a moderate band.
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.
BKR vs XLE: side by side
| BKR (Baker Hughes) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +40.9% | +44.0% |
| 5-year return | +205.5% | +206.7% |
| Volatility (ann.) | 32.2% | 23.1% |
| Beta vs S&P 500 | 0.61 | 0.27 |
| Max drawdown (3Y) | -28.0% | -20.1% |
| Market cap | $61.7B | – |
| P/E (trailing) | 19.9 | – |
| Dividend yield | 1.48% | 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 | BKR | XLE |
|---|---|---|
| 2022 | +26.0% | +64.3% |
| 2023 | +18.6% | -0.6% |
| 2024 | +23.1% | +5.6% |
| 2025 | +13.4% | +7.9% |
| 2026 | +37.9% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
BKR represents 3.65% of XLE's portfolio, so part of any move in XLE is BKR itself, and the correlation between them is partly mechanical.
Are BKR and XLE good diversifiers for each other?
Somewhat, no more. With 0.65 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between BKR and XLE?
Using weekly returns as of 2026-08-27: 0.65 over 3 years, with 0.53 over the last year and 0.70 over 5 years.
Is XLE a good diversifier for BKR?
Somewhat, no more. With 0.65 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.65 mean?
On the −1 to +1 scale, 0.65 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.
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Related comparisons
Hubs: BKR correlations · XLE correlations
