FE vs XLU: Correlation
How closely do FirstEnergy (FE) and Utilities Select Sector SPDR Fund (XLU) trade together? Their weekly returns over three years give a correlation of 0.77, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FE and XLU?
On 3 years of weekly data the FE/XLU correlation comes out at 0.77, strong. Recent behaviour matches the longer record: 0.84 over 1 year against 0.77 over 3. The 5-year figure is 0.81, and annualized covariance runs at 214.0 %².
XLU is one of the assets that tracks FE most closely: it ranks #2 out of the 32 assets we track against FE. On 12-month performance FE holds a 5.8-point edge, +9.9% against +4.1%. On a rolling one-year basis the correlation drifted between 0.61 and 0.89, a moderate band.
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.
FE vs XLU: side by side
| FE (FirstEnergy) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +9.9% | +4.1% |
| 5-year return | +46.7% | +46.3% |
| Volatility (ann.) | 17.6% | 15.8% |
| Beta vs S&P 500 | 0.04 | 0.26 |
| Max drawdown (3Y) | -14.7% | -13.1% |
| Market cap | $26.8B | – |
| P/E (trailing) | 25.0 | – |
| Dividend yield | 3.85% | 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 | FE | XLU |
|---|---|---|
| 2022 | +4.8% | +1.4% |
| 2023 | -8.9% | -7.2% |
| 2024 | +13.2% | +23.3% |
| 2025 | +17.3% | +16.0% |
| 2026 | +6.4% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
FE represents 1.79% of XLU's portfolio, so part of any move in XLU is FE itself, and the correlation between them is partly mechanical.
Are FE and XLU good diversifiers for each other?
Only partially. A correlation of 0.77 means FE and XLU 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 FE and XLU?
The FE/XLU correlation stands at 0.77 on a 3-year window (1 year: 0.84, 5 years: 0.81), computed from weekly returns as of 2026-08-27.
Is XLU a good diversifier for FE?
Only partially. A correlation of 0.77 means FE and XLU share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.77 mean?
On the −1 to +1 scale, 0.77 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/fe-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/fe-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: FE correlations · XLU correlations
