LYB vs XLE: Correlation
How closely do LyondellBasell (LYB) and Energy Select Sector SPDR Fund (XLE) trade together? Their weekly returns over three years give a correlation of 0.59, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LYB and XLE?
Across a 3-year window, the weekly returns of LYB and XLE correlate at 0.59, moderate. Little has changed lately, as the 1-year reading of 0.57 lands near the 3-year figure. Stretching to 5 years gives 0.62, with an annualized covariance of 455.5 %².
Among the 36 assets we track against LYB, XLE ranks #9 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLE outperformed by 24.9 percentage points (+19.1% for LYB against +44.0% for XLE). Across three years, the rolling one-year figure varied moderately, from 0.50 to 0.78.
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.
LYB vs XLE: side by side
| LYB (LyondellBasell) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +19.1% | +44.0% |
| 5-year return | -12.8% | +206.7% |
| Volatility (ann.) | 33.7% | 23.1% |
| Beta vs S&P 500 | 0.42 | 0.27 |
| Max drawdown (3Y) | -55.4% | -20.1% |
| Market cap | $20.4B | – |
| P/E (trailing) | – | – |
| Dividend yield | 6.58% | 2.55% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $39.2B |
| Sector / category | Materials | 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 | LYB | XLE |
|---|---|---|
| 2022 | -1.0% | +64.3% |
| 2023 | +20.7% | -0.6% |
| 2024 | -17.4% | +5.6% |
| 2025 | -36.0% | +7.9% |
| 2026 | +50.5% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LYB and XLE good diversifiers for each other?
Somewhat, no more. With 0.59 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between LYB and XLE?
Using weekly returns as of 2026-08-27: 0.59 over 3 years, with 0.57 over the last year and 0.62 over 5 years.
Is XLE a good diversifier for LYB?
Somewhat, no more. With 0.59 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.59 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.
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Related comparisons
Hubs: LYB correlations · XLE correlations
