NGS vs XLE: Correlation
Measured on weekly returns over the past three years, Natural Gas Services Group, Inc. (NGS) and Energy Select Sector SPDR Fund (XLE) carry a correlation of 0.57, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NGS and XLE?
On 3 years of weekly data the NGS/XLE correlation comes out at 0.57, moderate. The past 12 months show a weaker link (0.46) than the 3-year average (0.57). The 5-year figure is 0.52, and annualized covariance runs at 595.8 %².
Within NGS's tracked universe of 13 assets, XLE comes in at #5 by 3-year correlation. The trailing year gives XLE the advantage: +37.9% versus +44.0%, a 6.1-point spread. Note the risk asymmetry: NGS runs 1.9 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
NGS vs XLE: side by side
| NGS (Natural Gas Services Group, Inc.) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +37.9% | +44.0% |
| 5-year return | +274.7% | +206.7% |
| Volatility (ann.) | 45.0% | 23.1% |
| Beta vs S&P 500 | 0.87 | 0.27 |
| Max drawdown (3Y) | -40.9% | -20.1% |
| Market cap | $0.5B | – |
| P/E (trailing) | 21.7 | – |
| Dividend yield | 1.35% | 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 | NGS | XLE |
|---|---|---|
| 2022 | +9.5% | +64.3% |
| 2023 | +40.3% | -0.6% |
| 2024 | +66.7% | +5.6% |
| 2025 | +26.5% | +7.9% |
| 2026 | +6.3% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NGS and XLE good diversifiers for each other?
Only partially. A correlation of 0.57 means NGS and XLE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between NGS and XLE?
The NGS/XLE correlation stands at 0.57 on a 3-year window (1 year: 0.46, 5 years: 0.52), computed from weekly returns as of 2026-08-27.
Is XLE a good diversifier for NGS?
Only partially. A correlation of 0.57 means NGS and XLE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.57 mean?
A reading of 0.57 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/ngs-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ngs-vs-xle/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: NGS correlations · XLE correlations
