PDS vs XLE: Correlation
How closely do Precision Drilling Corporation (PDS) and Energy Select Sector SPDR Fund (XLE) trade together? Their weekly returns over three years give a correlation of 0.71, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PDS and XLE?
Across a 3-year window, the weekly returns of PDS and XLE correlate at 0.71, strong. Recent behaviour matches the longer record: 0.74 over 1 year against 0.71 over 3. Stretching to 5 years gives 0.72, with an annualized covariance of 620.6 %².
By 3-year correlation, XLE places #4 of the 13 assets tracked against PDS. On 12-month performance PDS holds a 14.3-point edge, +58.3% against +44.0%. Note the risk asymmetry: PDS runs 1.6 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.
PDS vs XLE: side by side
| PDS (Precision Drilling Corporation) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +58.3% | +44.0% |
| 5-year return | +182.9% | +206.7% |
| Volatility (ann.) | 37.7% | 23.1% |
| Beta vs S&P 500 | 0.49 | 0.27 |
| Max drawdown (3Y) | -50.5% | -20.1% |
| Market cap | $1.2B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 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 | PDS | XLE |
|---|---|---|
| 2022 | +116.5% | +64.3% |
| 2023 | -29.2% | -0.6% |
| 2024 | +12.5% | +5.6% |
| 2025 | +17.7% | +7.9% |
| 2026 | +25.7% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PDS and XLE good diversifiers for each other?
Only partially. A correlation of 0.71 means PDS and XLE 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 PDS and XLE?
The PDS/XLE correlation stands at 0.71 on a 3-year window (1 year: 0.74, 5 years: 0.72), computed from weekly returns as of 2026-08-27.
Is XLE a good diversifier for PDS?
Only partially. A correlation of 0.71 means PDS and XLE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.71 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/pds-vs-xle.json
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Related comparisons
Hubs: PDS correlations · XLE correlations
