LNG vs XLE: Correlation
How closely do Cheniere Energy, Inc. (LNG) and Energy Select Sector SPDR Fund (XLE) trade together? Their weekly returns over three years give a correlation of 0.62, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LNG and XLE?
On 3 years of weekly data the LNG/XLE correlation comes out at 0.62, strong. Little has changed lately, as the 1-year reading of 0.71 lands near the 3-year figure. The 5-year figure is 0.64, and annualized covariance runs at 402.9 %².
Among the 20 assets we track against LNG, XLE ranks #5 by 3-year correlation. The last year tells two different stories: XLE led by 26.6 percentage points, +17.4% for LNG against +44.0% for XLE.
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.
LNG vs XLE: side by side
| LNG (Cheniere Energy, Inc.) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +17.4% | +44.0% |
| 5-year return | +231.8% | +206.7% |
| Volatility (ann.) | 28.3% | 23.1% |
| Beta vs S&P 500 | 0.13 | 0.27 |
| Max drawdown (3Y) | -24.9% | -20.1% |
| Market cap | $58.0B | – |
| P/E (trailing) | 21.5 | – |
| Dividend yield | 0.78% | 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 | LNG | XLE |
|---|---|---|
| 2022 | +49.3% | +64.3% |
| 2023 | +15.0% | -0.6% |
| 2024 | +27.2% | +5.6% |
| 2025 | -8.7% | +7.9% |
| 2026 | +45.5% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LNG and XLE good diversifiers for each other?
To a limited degree. At 0.62 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 LNG and XLE?
As of 2026-08-27, the correlation of weekly returns between LNG and XLE is 0.62 over 3 years, 0.71 over 1 year and 0.64 over 5 years.
Is XLE a good diversifier for LNG?
To a limited degree. At 0.62 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 0.62 mean?
A reading of 0.62 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/lng-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/lng-vs-xle/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: LNG correlations · XLE correlations
