CEG vs XLU: Correlation
How closely do Constellation Energy (CEG) and Utilities Select Sector SPDR Fund (XLU) trade together? Their weekly returns over three years give a correlation of 0.38, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CEG and XLU?
Over the past 3 years, CEG and XLU moved with a correlation of 0.38, which is moderate. The link has tightened recently: the 1-year correlation (0.50) runs above the 3-year figure (0.38). Over 5 years the correlation is 0.41, and the annualized covariance of weekly returns is 310.1 %².
Among the 32 assets we track against CEG, XLU ranks #19 by 3-year correlation. The trailing year gives XLU the advantage: -10.1% versus +4.1%, a 14.2-point spread. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.08 to 0.61. Note the risk asymmetry: CEG runs 3.3 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
CEG vs XLU: side by side
| CEG (Constellation Energy) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -10.1% | +4.1% |
| 5-year return | +598.5% | +46.3% |
| Volatility (ann.) | 52.1% | 15.8% |
| Beta vs S&P 500 | 1.42 | 0.26 |
| Max drawdown (3Y) | -50.7% | -13.1% |
| Market cap | $100.1B | – |
| P/E (trailing) | 27.3 | – |
| Dividend yield | 0.58% | 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 | CEG | XLU |
|---|---|---|
| 2022 | – | +1.4% |
| 2023 | +37.2% | -7.2% |
| 2024 | +92.7% | +23.3% |
| 2025 | +58.8% | +16.0% |
| 2026 | -19.7% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 6.58% of XLU is CEG itself, so the fund partly moves with the stock by construction.
Are CEG and XLU good diversifiers for each other?
Reasonably. At 0.38, CEG and XLU keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between CEG and XLU?
Using weekly returns as of 2026-08-27: 0.38 over 3 years, with 0.50 over the last year and 0.41 over 5 years.
Is XLU a good diversifier for CEG?
Reasonably. At 0.38, CEG and XLU keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.38 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ceg-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ceg-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: CEG correlations · XLU correlations
