DOW vs PSX: Correlation
Measured on weekly returns over the past three years, Dow Inc. (DOW) and Phillips 66 (PSX) carry a correlation of 0.60, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DOW and PSX?
On 3 years of weekly data the DOW/PSX correlation comes out at 0.60, strong. The relationship has been stable: the 1-year correlation (0.58) sits close to the 3-year figure. The 5-year figure is 0.57, and annualized covariance runs at 707.9 %².
Among the 32 assets we track against DOW, PSX ranks #9 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months PSX outperformed by 57.2 percentage points (+29.0% for DOW against +86.2% for PSX). The link looks structural: the rolling one-year correlation barely moved, holding between 0.45 and 0.68.
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.
DOW vs PSX: side by side
| DOW (Dow Inc.) | PSX (Phillips 66) | |
|---|---|---|
| 1-year return | +29.0% | +86.2% |
| 5-year return | -38.4% | +301.8% |
| Volatility (ann.) | 35.2% | 33.4% |
| Beta vs S&P 500 | 0.62 | 0.58 |
| Max drawdown (3Y) | -62.2% | -44.4% |
| Market cap | $21.9B | $96.1B |
| P/E (trailing) | – | 13.8 |
| Dividend yield | 4.62% | 2.04% |
| Sector / category | Materials | Energy |
Year-by-year returns
| Year | DOW | PSX |
|---|---|---|
| 2022 | -6.6% | +49.6% |
| 2023 | +14.7% | +33.1% |
| 2024 | -22.8% | -11.6% |
| 2025 | -37.4% | +17.5% |
| 2026 | +32.6% | +89.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DOW and PSX good diversifiers for each other?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between DOW and PSX?
Using weekly returns as of 2026-08-27: 0.60 over 3 years, with 0.58 over the last year and 0.57 over 5 years.
Is PSX a good diversifier for DOW?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.60 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/dow-vs-psx.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/dow-vs-psx/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: DOW correlations · PSX correlations
