COP vs XLE: Correlation
ConocoPhillips (COP) and Energy Select Sector SPDR Fund (XLE) show a very strong relationship: their 3-year correlation of weekly returns is 0.89.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are COP and XLE?
Over the past 3 years, COP and XLE moved with a correlation of 0.89, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.90) sits close to the 3-year figure. Over 5 years the correlation is 0.92, and the annualized covariance of weekly returns is 600.1 %².
In COP's tracked universe of 40 assets, XLE sits right near the top at #1. The trailing year gives XLE the advantage: +36.5% versus +44.0%, a 7.5-point spread. The rolling one-year correlation stayed in a tight band between 0.85 and 0.92 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.
COP vs XLE: side by side
| COP (ConocoPhillips) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +36.5% | +44.0% |
| 5-year return | +175.2% | +206.7% |
| Volatility (ann.) | 29.1% | 23.1% |
| Beta vs S&P 500 | 0.25 | 0.27 |
| Max drawdown (3Y) | -36.3% | -20.1% |
| Market cap | $155.6B | – |
| P/E (trailing) | 17.3 | – |
| Dividend yield | 2.53% | 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 | COP | XLE |
|---|---|---|
| 2022 | +71.7% | +64.3% |
| 2023 | +2.0% | -0.6% |
| 2024 | -12.2% | +5.6% |
| 2025 | -2.3% | +7.9% |
| 2026 | +41.4% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLE holds COP at a 6.3% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are COP and XLE good diversifiers for each other?
No. With a correlation of 0.89, COP and XLE move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between COP and XLE?
The COP/XLE correlation stands at 0.89 on a 3-year window (1 year: 0.90, 5 years: 0.92), computed from weekly returns as of 2026-08-27.
Is XLE a good diversifier for COP?
No. With a correlation of 0.89, COP and XLE move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.89 mean?
On the −1 to +1 scale, 0.89 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/cop-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cop-vs-xle/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: COP correlations · XLE correlations
