NBR vs XLE: Correlation
How closely do Nabors Industries Ltd. (NBR) and Energy Select Sector SPDR Fund (XLE) trade together? Their weekly returns over three years give a correlation of 0.72, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NBR and XLE?
Over the past 3 years, NBR and XLE moved with a correlation of 0.72, which is strong. Little has changed lately, as the 1-year reading of 0.65 lands near the 3-year figure. Over 5 years the correlation is 0.75, and the annualized covariance of weekly returns is 1089.0 %².
Among the 18 assets we track against NBR, XLE ranks #6 by 3-year correlation. Correlation aside, the last 12 months split them widely, with NBR ahead by 109.3 points (+153.3% versus +44.0%). Risk is not evenly split, since NBR carries 2.8 times the volatility of the other side.
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.
NBR vs XLE: side by side
| NBR (Nabors Industries Ltd.) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +153.3% | +44.0% |
| 5-year return | +10.3% | +206.7% |
| Volatility (ann.) | 65.2% | 23.1% |
| Beta vs S&P 500 | 0.88 | 0.27 |
| Max drawdown (3Y) | -82.2% | -20.1% |
| Market cap | $1.4B | – |
| P/E (trailing) | 5.9 | – |
| Dividend yield | 0.00% | 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 | NBR | XLE |
|---|---|---|
| 2022 | +91.0% | +64.3% |
| 2023 | -47.3% | -0.6% |
| 2024 | -30.0% | +5.6% |
| 2025 | -5.0% | +7.9% |
| 2026 | +68.8% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NBR and XLE good diversifiers for each other?
Somewhat, no more. With 0.72 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between NBR and XLE?
The NBR/XLE correlation stands at 0.72 on a 3-year window (1 year: 0.65, 5 years: 0.75), computed from weekly returns as of 2026-08-27.
Is XLE a good diversifier for NBR?
Somewhat, no more. With 0.72 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.72 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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Hubs: NBR correlations · XLE correlations
