IMO vs XLE: Correlation
Measured on weekly returns over the past three years, Imperial Oil Limited (IMO) and Energy Select Sector SPDR Fund (XLE) carry a correlation of 0.75, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IMO and XLE?
Over the past 3 years, IMO and XLE moved with a correlation of 0.75, which is strong. The relationship has been stable: the 1-year correlation (0.74) sits close to the 3-year figure. Over 5 years the correlation is 0.80, and the annualized covariance of weekly returns is 495.4 %².
Within IMO's tracked universe of 12 assets, XLE comes in at #4 by 3-year correlation. The trailing year gives IMO the advantage: +50.4% versus +44.0%, a 6.4-point spread.
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.
IMO vs XLE: side by side
| IMO (Imperial Oil Limited) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +50.4% | +44.0% |
| 5-year return | +468.0% | +206.7% |
| Volatility (ann.) | 28.8% | 23.1% |
| Beta vs S&P 500 | 0.24 | 0.27 |
| Max drawdown (3Y) | -22.9% | -20.1% |
| Market cap | – | – |
| P/E (trailing) | 21.2 | – |
| Dividend yield | 2.42% | 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 | IMO | XLE |
|---|---|---|
| 2022 | +38.0% | +64.3% |
| 2023 | +20.6% | -0.6% |
| 2024 | +10.5% | +5.6% |
| 2025 | +43.8% | +7.9% |
| 2026 | +54.8% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IMO and XLE good diversifiers for each other?
To a limited degree. At 0.75 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 IMO and XLE?
As of 2026-08-27, the correlation of weekly returns between IMO and XLE is 0.75 over 3 years, 0.74 over 1 year and 0.80 over 5 years.
Is XLE a good diversifier for IMO?
To a limited degree. At 0.75 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 0.75 mean?
On the −1 to +1 scale, 0.75 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/imo-vs-xle.json
Markdown for the live badge, attribution link included:
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Related comparisons
Hubs: IMO correlations · XLE correlations
