HAL vs XLE: Correlation
Measured on weekly returns over the past three years, Halliburton (HAL) and Energy Select Sector SPDR Fund (XLE) carry a correlation of 0.81, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HAL and XLE?
On 3 years of weekly data the HAL/XLE correlation comes out at 0.81, very strong, meaning they move nearly in lockstep. The past 12 months show a weaker link (0.68) than the 3-year average (0.81). The 5-year figure is 0.84, and annualized covariance runs at 710.9 %².
In HAL's tracked universe of 44 assets, XLE sits right near the top at #2. Their recent paths diverged sharply: over the last 12 months HAL outperformed by 18.8 percentage points (+62.8% for HAL against +44.0% for XLE). The link looks structural: the rolling one-year correlation barely moved, holding between 0.68 and 0.91. One caveat on sizing: HAL is 1.6 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.
HAL vs XLE: side by side
| HAL (Halliburton) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +62.8% | +44.0% |
| 5-year return | +93.6% | +206.7% |
| Volatility (ann.) | 38.0% | 23.1% |
| Beta vs S&P 500 | 0.55 | 0.27 |
| Max drawdown (3Y) | -54.0% | -20.1% |
| Market cap | $29.6B | – |
| P/E (trailing) | 18.0 | – |
| Dividend yield | 1.97% | 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 | HAL | XLE |
|---|---|---|
| 2022 | +74.5% | +64.3% |
| 2023 | -6.5% | -0.6% |
| 2024 | -23.2% | +5.6% |
| 2025 | +7.0% | +7.9% |
| 2026 | +26.7% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 1.71% of XLE is HAL itself, so the fund partly moves with the stock by construction.
Are HAL and XLE good diversifiers for each other?
No. With a correlation of 0.81, HAL and XLE move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between HAL and XLE?
As of 2026-08-27, the correlation of weekly returns between HAL and XLE is 0.81 over 3 years, 0.68 over 1 year and 0.84 over 5 years.
Is XLE a good diversifier for HAL?
No. With a correlation of 0.81, HAL and XLE move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.81 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
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Related comparisons
Hubs: HAL correlations · XLE correlations
