ES vs XLU: Correlation
Measured on weekly returns over the past three years, Eversource Energy (ES) and Utilities Select Sector SPDR Fund (XLU) carry a correlation of 0.68, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ES and XLU?
On 3 years of weekly data the ES/XLU correlation comes out at 0.68, strong. Recent behaviour matches the longer record: 0.70 over 1 year against 0.68 over 3. The 5-year figure is 0.78, and annualized covariance runs at 245.6 %².
In ES's tracked universe of 28 assets, XLU sits right near the top at #2. On 12-month performance ES holds a 10.4-point edge, +14.5% against +4.1%. The rolling one-year correlation moved between 0.45 and 0.92 over the past three years, a moderate range.
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.
ES vs XLU: side by side
| ES (Eversource Energy) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +14.5% | +4.1% |
| 5-year return | -5.0% | +46.3% |
| Volatility (ann.) | 22.9% | 15.8% |
| Beta vs S&P 500 | 0.20 | 0.26 |
| Max drawdown (3Y) | -18.8% | -13.1% |
| Market cap | $26.7B | – |
| P/E (trailing) | 18.6 | – |
| Dividend yield | 4.30% | 2.70% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $23.1B |
| Sector / category | Utilities | Sector ETF |
XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Year-by-year returns
| Year | ES | XLU |
|---|---|---|
| 2022 | -5.1% | +1.4% |
| 2023 | -23.4% | -7.2% |
| 2024 | -2.5% | +23.3% |
| 2025 | +22.9% | +16.0% |
| 2026 | +7.7% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLU holds ES at a 1.99% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are ES and XLU good diversifiers for each other?
To a limited degree. At 0.68 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between ES and XLU?
The ES/XLU correlation stands at 0.68 on a 3-year window (1 year: 0.70, 5 years: 0.78), computed from weekly returns as of 2026-08-27.
Is XLU a good diversifier for ES?
To a limited degree. At 0.68 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.68 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/es-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/es-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ES correlations · XLU correlations
