NOG vs XLE: Correlation
Northern Oil and Gas, Inc. (NOG) and Energy Select Sector SPDR Fund (XLE) show a very strong relationship: their 3-year correlation of weekly returns is 0.81.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NOG and XLE?
Across a 3-year window, the weekly returns of NOG and XLE correlate at 0.81, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.78) sits close to the 3-year figure. Stretching to 5 years gives 0.83, with an annualized covariance of 799.1 %².
Within NOG's tracked universe of 26 assets, XLE comes in at #5 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLE ahead by 34.8 points (+9.2% versus +44.0%). Note the risk asymmetry: NOG runs 1.8 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.
NOG vs XLE: side by side
| NOG (Northern Oil and Gas, Inc.) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +9.2% | +44.0% |
| 5-year return | +105.5% | +206.7% |
| Volatility (ann.) | 42.6% | 23.1% |
| Beta vs S&P 500 | 0.55 | 0.27 |
| Max drawdown (3Y) | -55.1% | -20.1% |
| Market cap | $2.8B | – |
| P/E (trailing) | – | – |
| Dividend yield | 6.92% | 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 | NOG | XLE |
|---|---|---|
| 2022 | +54.5% | +64.3% |
| 2023 | +25.5% | -0.6% |
| 2024 | +4.8% | +5.6% |
| 2025 | -38.2% | +7.9% |
| 2026 | +26.2% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NOG and XLE good diversifiers for each other?
No. With a correlation of 0.81, NOG and XLE move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between NOG and XLE?
As of 2026-08-27, the correlation of weekly returns between NOG and XLE is 0.81 over 3 years, 0.78 over 1 year and 0.83 over 5 years.
Is XLE a good diversifier for NOG?
No. With a correlation of 0.81, NOG and XLE move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.81 mean?
A reading of 0.81 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/nog-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/nog-vs-xle/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: NOG correlations · XLE correlations
