EOG vs XLE: Correlation
Measured on weekly returns over the past three years, EOG Resources (EOG) and Energy Select Sector SPDR Fund (XLE) carry a correlation of 0.88, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EOG and XLE?
Across a 3-year window, the weekly returns of EOG and XLE correlate at 0.88, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.87) sits close to the 3-year figure. Stretching to 5 years gives 0.91, with an annualized covariance of 574.1 %².
Few assets follow EOG as closely as XLE, which ranks #1 of 40 tracked partners. Correlation aside, the last 12 months split them widely, with XLE ahead by 22.3 points (+21.7% versus +44.0%). Stability stands out here, with the rolling one-year correlation confined to 0.84 through 0.94.
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.
EOG vs XLE: side by side
| EOG (EOG Resources) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.7% | +44.0% |
| 5-year return | +171.5% | +206.7% |
| Volatility (ann.) | 28.1% | 23.1% |
| Beta vs S&P 500 | 0.14 | 0.27 |
| Max drawdown (3Y) | -23.7% | -20.1% |
| Market cap | $75.8B | – |
| P/E (trailing) | 11.3 | – |
| Dividend yield | 2.82% | 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 | EOG | XLE |
|---|---|---|
| 2022 | +56.9% | +64.3% |
| 2023 | -2.0% | -0.6% |
| 2024 | +4.3% | +5.6% |
| 2025 | -11.4% | +7.9% |
| 2026 | +41.0% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
EOG represents 4.24% of XLE's portfolio, so part of any move in XLE is EOG itself, and the correlation between them is partly mechanical.
Are EOG and XLE good diversifiers for each other?
No: a correlation of 0.88 means EOG and XLE tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between EOG and XLE?
Using weekly returns as of 2026-08-27: 0.88 over 3 years, with 0.87 over the last year and 0.91 over 5 years.
Is XLE a good diversifier for EOG?
No: a correlation of 0.88 means EOG and XLE tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.88 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.
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Related comparisons
Hubs: EOG correlations · XLE correlations
