NI vs XLU: Correlation
Measured on weekly returns over the past three years, NiSource (NI) and Utilities Select Sector SPDR Fund (XLU) carry a correlation of 0.83, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NI and XLU?
On 3 years of weekly data the NI/XLU correlation comes out at 0.83, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.86 over 1 year against 0.83 over 3. The 5-year figure is 0.85, and annualized covariance runs at 232.8 %².
XLU is one of the assets that tracks NI most closely: it ranks #2 out of the 38 assets we track against NI. The trailing year gives XLU the advantage: -0.9% versus +4.1%, a 5.0-point spread. The rolling one-year correlation stayed in a tight band between 0.73 and 0.92 over the past three years, which points to a structural rather than episodic relationship.
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.
NI vs XLU: side by side
| NI (NiSource) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -0.9% | +4.1% |
| 5-year return | +94.6% | +46.3% |
| Volatility (ann.) | 17.8% | 15.8% |
| Beta vs S&P 500 | 0.26 | 0.26 |
| Max drawdown (3Y) | -16.7% | -13.1% |
| Market cap | $19.6B | – |
| P/E (trailing) | 21.9 | – |
| Dividend yield | 1.41% | 2.70% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $23.1B |
| Sector / category | Utilities | Sector ETF |
XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Year-by-year returns
| Year | NI | XLU |
|---|---|---|
| 2022 | +2.7% | +1.4% |
| 2023 | +0.5% | -7.2% |
| 2024 | +43.5% | +23.3% |
| 2025 | +16.8% | +16.0% |
| 2026 | +0.0% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLU holds NI at a 1.45% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are NI and XLU good diversifiers for each other?
No. With a correlation of 0.83, NI and XLU move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between NI and XLU?
As of 2026-08-27, the correlation of weekly returns between NI and XLU is 0.83 over 3 years, 0.86 over 1 year and 0.85 over 5 years.
Is XLU a good diversifier for NI?
No. With a correlation of 0.83, NI and XLU move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.83 mean?
On the −1 to +1 scale, 0.83 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/ni-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ni-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: NI correlations · XLU correlations
