DAR vs XLE: Correlation
How closely do Darling Ingredients Inc. (DAR) and Energy Select Sector SPDR Fund (XLE) trade together? Their weekly returns over three years give a correlation of 0.48, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DAR and XLE?
On 3 years of weekly data the DAR/XLE correlation comes out at 0.48, moderate. Little has changed lately, as the 1-year reading of 0.55 lands near the 3-year figure. The 5-year figure is 0.47, and annualized covariance runs at 422.2 %².
Within DAR's tracked universe of 13 assets, XLE comes in at #5 by 3-year correlation. The last year tells two different stories: DAR led by 34.3 percentage points, +78.3% for DAR against +44.0% for XLE. Risk is not evenly split, since DAR carries 1.6 times the volatility of the other side.
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.
DAR vs XLE: side by side
| DAR (Darling Ingredients Inc.) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +78.3% | +44.0% |
| 5-year return | -19.2% | +206.7% |
| Volatility (ann.) | 37.8% | 23.1% |
| Beta vs S&P 500 | 0.63 | 0.27 |
| Max drawdown (3Y) | -56.0% | -20.1% |
| Market cap | $9.7B | – |
| P/E (trailing) | 16.8 | – |
| Dividend yield | 0.00% | 2.55% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $39.2B |
| Sector / category | US Listed | 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 | DAR | XLE |
|---|---|---|
| 2022 | -9.7% | +64.3% |
| 2023 | -20.4% | -0.6% |
| 2024 | -32.4% | +5.6% |
| 2025 | +6.9% | +7.9% |
| 2026 | +70.5% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DAR and XLE good diversifiers for each other?
Reasonably. At 0.48, DAR and XLE keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between DAR and XLE?
As of 2026-08-27, the correlation of weekly returns between DAR and XLE is 0.48 over 3 years, 0.55 over 1 year and 0.47 over 5 years.
Is XLE a good diversifier for DAR?
Reasonably. At 0.48, DAR and XLE keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.48 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/dar-vs-xle.json
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Related comparisons
Hubs: DAR correlations · XLE correlations
