NOV vs XLE: Correlation
Measured on weekly returns over the past three years, NOV Inc. (NOV) and Energy Select Sector SPDR Fund (XLE) carry a correlation of 0.73, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NOV and XLE?
On 3 years of weekly data the NOV/XLE correlation comes out at 0.73, strong. The link has loosened recently: the 1-year correlation (0.62) runs below the 3-year figure (0.73). The 5-year figure is 0.78, and annualized covariance runs at 601.5 %².
By 3-year correlation, XLE places #6 of the 27 assets tracked against NOV. Their recent paths diverged sharply: over the last 12 months NOV outperformed by 18.2 percentage points (+62.2% for NOV against +44.0% for XLE). One caveat on sizing: NOV is 1.5 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
NOV vs XLE: side by side
| NOV (NOV Inc.) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +62.2% | +44.0% |
| 5-year return | +71.8% | +206.7% |
| Volatility (ann.) | 35.6% | 23.1% |
| Beta vs S&P 500 | 0.61 | 0.27 |
| Max drawdown (3Y) | -47.2% | -20.1% |
| Market cap | $7.4B | – |
| P/E (trailing) | 74.1 | – |
| Dividend yield | 1.63% | 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 | NOV | XLE |
|---|---|---|
| 2022 | +55.7% | +64.3% |
| 2023 | -1.8% | -0.6% |
| 2024 | -26.8% | +5.6% |
| 2025 | +11.3% | +7.9% |
| 2026 | +34.6% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NOV and XLE good diversifiers for each other?
To a limited degree. At 0.73 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between NOV and XLE?
Using weekly returns as of 2026-08-27: 0.73 over 3 years, with 0.62 over the last year and 0.78 over 5 years.
Is XLE a good diversifier for NOV?
To a limited degree. At 0.73 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.73 mean?
On the −1 to +1 scale, 0.73 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/nov-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/nov-vs-xle/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: NOV correlations · XLE correlations
