CF vs XLE: Correlation
Measured on weekly returns over the past three years, CF Industries (CF) and Energy Select Sector SPDR Fund (XLE) carry a correlation of 0.61, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CF and XLE?
Over the past 3 years, CF and XLE moved with a correlation of 0.61, which is strong. The relationship has been stable: the 1-year correlation (0.71) sits close to the 3-year figure. Over 5 years the correlation is 0.55, and the annualized covariance of weekly returns is 463.4 %².
By 3-year correlation, XLE places #4 of the 50 assets tracked against CF. Neither side won the trailing year by much: +48.6% against +44.0%. The rolling one-year correlation stayed in a tight band between 0.50 and 0.70 over the past three years, which points to a structural rather than episodic relationship.
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.
CF vs XLE: side by side
| CF (CF Industries) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +48.6% | +44.0% |
| 5-year return | +211.5% | +206.7% |
| Volatility (ann.) | 32.8% | 23.1% |
| Beta vs S&P 500 | -0.20 | 0.27 |
| Max drawdown (3Y) | -29.2% | -20.1% |
| Market cap | $19.0B | – |
| P/E (trailing) | 9.3 | – |
| Dividend yield | 1.59% | 2.55% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $39.2B |
| Sector / category | Materials | 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 | CF | XLE |
|---|---|---|
| 2022 | +22.3% | +64.3% |
| 2023 | -4.7% | -0.6% |
| 2024 | +10.1% | +5.6% |
| 2025 | -7.2% | +7.9% |
| 2026 | +64.9% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CF and XLE good diversifiers for each other?
Only partially. A correlation of 0.61 means CF and XLE 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 CF and XLE?
As of 2026-08-27, the correlation of weekly returns between CF and XLE is 0.61 over 3 years, 0.71 over 1 year and 0.55 over 5 years.
Is XLE a good diversifier for CF?
Only partially. A correlation of 0.61 means CF and XLE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.61 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/cf-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cf-vs-xle/)
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Related comparisons
Hubs: CF correlations · XLE correlations
