PCG vs XLU: Correlation
How closely do PG&E Corporation (PCG) and Utilities Select Sector SPDR Fund (XLU) trade together? Their weekly returns over three years give a correlation of 0.61, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PCG and XLU?
Across a 3-year window, the weekly returns of PCG and XLU correlate at 0.61, strong. The relationship has been stable: the 1-year correlation (0.71) sits close to the 3-year figure. Stretching to 5 years gives 0.49, with an annualized covariance of 238.5 %².
In PCG's tracked universe of 30 assets, XLU sits right near the top at #2. The last year tells two different stories: PCG led by 16.2 percentage points, +20.3% for PCG against +4.1% for XLU. The relationship is regime-dependent: the rolling one-year correlation swung between 0.31 and 0.81 over the past three years, so this pair behaves very differently depending on the market environment. One caveat on sizing: PCG is 1.6 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.
PCG vs XLU: side by side
| PCG (PG&E Corporation) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.3% | +4.1% |
| 5-year return | +102.7% | +46.3% |
| Volatility (ann.) | 24.7% | 15.8% |
| Beta vs S&P 500 | 0.24 | 0.26 |
| Max drawdown (3Y) | -39.6% | -13.1% |
| Market cap | $39.5B | – |
| P/E (trailing) | 12.9 | – |
| Dividend yield | 0.96% | 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 | PCG | XLU |
|---|---|---|
| 2022 | +33.9% | +1.4% |
| 2023 | +10.9% | -7.2% |
| 2024 | +12.3% | +23.3% |
| 2025 | -19.7% | +16.0% |
| 2026 | +12.3% | +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 PCG at a 2.96% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are PCG and XLU good diversifiers for each other?
To a limited degree. At 0.61 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 PCG and XLU?
Using weekly returns as of 2026-08-27: 0.61 over 3 years, with 0.71 over the last year and 0.49 over 5 years.
Is XLU a good diversifier for PCG?
To a limited degree. At 0.61 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 0.61 mean?
A reading of 0.61 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/pcg-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/pcg-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: PCG correlations · XLU correlations
