EGY vs XLE: Correlation
VAALCO Energy, Inc. (EGY) and Energy Select Sector SPDR Fund (XLE) show a strong relationship: their 3-year correlation of weekly returns is 0.63.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EGY and XLE?
Across a 3-year window, the weekly returns of EGY and XLE correlate at 0.63, strong. Little has changed lately, as the 1-year reading of 0.54 lands near the 3-year figure. Stretching to 5 years gives 0.68, with an annualized covariance of 693.2 %².
By 3-year correlation, XLE places #4 of the 10 assets tracked against EGY. Over the last 12 months EGY came out ahead by 13.0 percentage points (+57.0% against +44.0%). One caveat on sizing: EGY is 2.1 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.
EGY vs XLE: side by side
| EGY (VAALCO Energy, Inc.) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +57.0% | +44.0% |
| 5-year return | +195.9% | +206.7% |
| Volatility (ann.) | 47.9% | 23.1% |
| Beta vs S&P 500 | 0.50 | 0.27 |
| Max drawdown (3Y) | -56.5% | -20.1% |
| Market cap | $0.6B | – |
| P/E (trailing) | – | – |
| Dividend yield | 4.39% | 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 | EGY | XLE |
|---|---|---|
| 2022 | +45.5% | +64.3% |
| 2023 | +4.4% | -0.6% |
| 2024 | +2.0% | +5.6% |
| 2025 | -10.7% | +7.9% |
| 2026 | +64.0% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EGY and XLE good diversifiers for each other?
Only partially. A correlation of 0.63 means EGY and XLE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between EGY and XLE?
Using weekly returns as of 2026-08-27: 0.63 over 3 years, with 0.54 over the last year and 0.68 over 5 years.
Is XLE a good diversifier for EGY?
Only partially. A correlation of 0.63 means EGY and XLE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.63 mean?
A reading of 0.63 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/egy-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/egy-vs-xle/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EGY correlations · XLE correlations
