NRG vs XLU: Correlation
NRG Energy (NRG) and Utilities Select Sector SPDR Fund (XLU) show a moderate relationship: their 3-year correlation of weekly returns is 0.51.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NRG and XLU?
On 3 years of weekly data the NRG/XLU correlation comes out at 0.51, moderate. Lately the two have moved closer together, with the 1-year correlation at 0.71 versus 0.51 over 3 years. The 5-year figure is 0.47, and annualized covariance runs at 359.5 %².
By 3-year correlation, XLU places #15 of the 31 assets tracked against NRG. The last year tells two different stories: XLU led by 25.9 percentage points, -21.8% for NRG against +4.1% for XLU. This link changes with the market regime, having swung between 0.13 and 0.68 on a rolling one-year basis. Note the risk asymmetry: NRG runs 2.8 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.
NRG vs XLU: side by side
| NRG (NRG Energy) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -21.8% | +4.1% |
| 5-year return | +191.5% | +46.3% |
| Volatility (ann.) | 44.4% | 15.8% |
| Beta vs S&P 500 | 1.30 | 0.26 |
| Max drawdown (3Y) | -38.9% | -13.1% |
| Market cap | $24.1B | – |
| P/E (trailing) | 30.2 | – |
| Dividend yield | 1.61% | 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 | NRG | XLU |
|---|---|---|
| 2022 | -23.5% | +1.4% |
| 2023 | +69.4% | -7.2% |
| 2024 | +78.6% | +23.3% |
| 2025 | +78.9% | +16.0% |
| 2026 | -27.5% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 1.8% of XLU is NRG itself, so the fund partly moves with the stock by construction.
Are NRG and XLU good diversifiers for each other?
Only partially. A correlation of 0.51 means NRG and XLU 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 NRG and XLU?
Using weekly returns as of 2026-08-27: 0.51 over 3 years, with 0.71 over the last year and 0.47 over 5 years.
Is XLU a good diversifier for NRG?
Only partially. A correlation of 0.51 means NRG and XLU share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.51 mean?
A reading of 0.51 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/nrg-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/nrg-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: NRG correlations · XLU correlations
