MGY vs XLE: Correlation
Magnolia Oil & Gas Corporation (MGY) and Energy Select Sector SPDR Fund (XLE) show a very strong relationship: their 3-year correlation of weekly returns is 0.86.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MGY and XLE?
Over the past 3 years, MGY and XLE moved with a correlation of 0.86, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.82 over 1 year against 0.86 over 3. Over 5 years the correlation is 0.87, and the annualized covariance of weekly returns is 635.5 %².
XLE is one of the assets that tracks MGY most closely: it ranks #1 out of the 28 assets we track against MGY. The last year tells two different stories: XLE led by 33.4 percentage points, +10.6% for MGY 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.
MGY vs XLE: side by side
| MGY (Magnolia Oil & Gas Corporation) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +10.6% | +44.0% |
| 5-year return | +92.1% | +206.7% |
| Volatility (ann.) | 32.0% | 23.1% |
| Beta vs S&P 500 | 0.40 | 0.27 |
| Max drawdown (3Y) | -31.5% | -20.1% |
| Market cap | $6.5B | – |
| P/E (trailing) | 11.5 | – |
| Dividend yield | 2.50% | 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 | MGY | XLE |
|---|---|---|
| 2022 | +26.5% | +64.3% |
| 2023 | -7.3% | -0.6% |
| 2024 | +12.2% | +5.6% |
| 2025 | -3.8% | +7.9% |
| 2026 | +24.1% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MGY and XLE good diversifiers for each other?
Not really. At 0.86, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between MGY and XLE?
The MGY/XLE correlation stands at 0.86 on a 3-year window (1 year: 0.82, 5 years: 0.87), computed from weekly returns as of 2026-08-27.
Is XLE a good diversifier for MGY?
Not really. At 0.86, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.86 mean?
On the −1 to +1 scale, 0.86 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/mgy-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mgy-vs-xle/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: MGY correlations · XLE correlations
