DGZ vs XLU: Correlation
Measured on weekly returns over the past three years, DB Gold Short ETN due February 15, 2038 (DGZ) and Utilities Select Sector SPDR Fund (XLU) carry a correlation of -0.20, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGZ and XLU?
Across a 3-year window, the weekly returns of DGZ and XLU correlate at -0.20, negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.16 over 1 year against -0.20 over 3. Stretching to 5 years gives -0.22, with an annualized covariance of -88.3 %².
Within DGZ's tracked universe of 156 assets, XLU comes in at #43 by 3-year correlation. The last year tells two different stories: XLU led by 30.7 percentage points, -26.6% for DGZ against +4.1% for XLU. One caveat on sizing: DGZ is 1.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
DGZ vs XLU: side by side
| DGZ (DB Gold Short ETN due February 15, 2038) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -26.6% | +4.1% |
| 5-year return | -50.3% | +46.3% |
| Volatility (ann.) | 28.3% | 15.8% |
| Beta vs S&P 500 | -0.18 | 0.26 |
| Max drawdown (3Y) | -59.5% | -13.1% |
| Dividend yield | – | 2.70% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $23.1B |
| Sector / category | US Listed | 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 | DGZ | XLU |
|---|---|---|
| 2022 | +4.9% | +1.4% |
| 2023 | -4.7% | -7.2% |
| 2024 | -16.5% | +23.3% |
| 2025 | -32.5% | +16.0% |
| 2026 | -10.0% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGZ and XLU good diversifiers for each other?
Yes: at -0.20, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between DGZ and XLU?
The DGZ/XLU correlation stands at -0.20 on a 3-year window (1 year: -0.16, 5 years: -0.22), computed from weekly returns as of 2026-08-27.
Is XLU a good diversifier for DGZ?
Yes: at -0.20, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.20 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/dgz-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/dgz-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: DGZ correlations · XLU correlations
