DVN vs XLE: Correlation
Measured on weekly returns over the past three years, Devon Energy (DVN) and Energy Select Sector SPDR Fund (XLE) carry a correlation of 0.87, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DVN and XLE?
Across a 3-year window, the weekly returns of DVN and XLE correlate at 0.87, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.86 lands near the 3-year figure. Stretching to 5 years gives 0.89, with an annualized covariance of 684.6 %².
XLE is one of the assets that tracks DVN most closely: it ranks #1 out of the 42 assets we track against DVN. Over the last 12 months XLE came out ahead by 8.1 percentage points (+35.9% against +44.0%). The link looks structural: the rolling one-year correlation barely moved, holding between 0.79 and 0.91.
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.
DVN vs XLE: side by side
| DVN (Devon Energy) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +35.9% | +44.0% |
| 5-year return | +102.7% | +206.7% |
| Volatility (ann.) | 34.3% | 23.1% |
| Beta vs S&P 500 | 0.16 | 0.27 |
| Max drawdown (3Y) | -49.2% | -20.1% |
| Market cap | $51.8B | – |
| P/E (trailing) | 10.2 | – |
| Dividend yield | 2.22% | 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 | DVN | XLE |
|---|---|---|
| 2022 | +50.9% | +64.3% |
| 2023 | -21.8% | -0.6% |
| 2024 | -25.2% | +5.6% |
| 2025 | +15.0% | +7.9% |
| 2026 | +30.2% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 3.2% of XLE is DVN itself, so the fund partly moves with the stock by construction.
Are DVN and XLE good diversifiers for each other?
No. With a correlation of 0.87, DVN and XLE move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between DVN and XLE?
Using weekly returns as of 2026-08-27: 0.87 over 3 years, with 0.86 over the last year and 0.89 over 5 years.
Is XLE a good diversifier for DVN?
No. With a correlation of 0.87, DVN and XLE move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.87 mean?
A reading of 0.87 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dvn-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/dvn-vs-xle/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: DVN correlations · XLE correlations
