DOW vs XLE: Correlation
Measured on weekly returns over the past three years, Dow Inc. (DOW) and Energy Select Sector SPDR Fund (XLE) carry a correlation of 0.56, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DOW and XLE?
Across a 3-year window, the weekly returns of DOW and XLE correlate at 0.56, moderate. Little has changed lately, as the 1-year reading of 0.59 lands near the 3-year figure. Stretching to 5 years gives 0.54, with an annualized covariance of 458.1 %².
Among the 32 assets we track against DOW, XLE ranks #15 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLE ahead by 15.0 points (+29.0% versus +44.0%). The rolling one-year correlation moved between 0.43 and 0.71 over the past three years, a moderate range. Risk is not evenly split, since DOW carries 1.5 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.
DOW vs XLE: side by side
| DOW (Dow Inc.) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +29.0% | +44.0% |
| 5-year return | -38.4% | +206.7% |
| Volatility (ann.) | 35.2% | 23.1% |
| Beta vs S&P 500 | 0.62 | 0.27 |
| Max drawdown (3Y) | -62.2% | -20.1% |
| Market cap | $21.9B | – |
| P/E (trailing) | – | – |
| Dividend yield | 4.62% | 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 | DOW | XLE |
|---|---|---|
| 2022 | -6.6% | +64.3% |
| 2023 | +14.7% | -0.6% |
| 2024 | -22.8% | +5.6% |
| 2025 | -37.4% | +7.9% |
| 2026 | +32.6% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DOW and XLE good diversifiers for each other?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between DOW and XLE?
Using weekly returns as of 2026-08-27: 0.56 over 3 years, with 0.59 over the last year and 0.54 over 5 years.
Is XLE a good diversifier for DOW?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.56 mean?
On the −1 to +1 scale, 0.56 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/dow-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/dow-vs-xle/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: DOW correlations · XLE correlations
