PEO vs XLE: Correlation
Measured on weekly returns over the past three years, Adams Natural Resources Fund, Inc. (PEO) and Energy Select Sector SPDR Fund (XLE) carry a correlation of 0.95, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PEO and XLE?
Over the past 3 years, PEO and XLE moved with a correlation of 0.95, which is very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.93 lands near the 3-year figure. Over 5 years the correlation is 0.96, and the annualized covariance of weekly returns is 442.5 %².
XLE is one of the assets that tracks PEO most closely: it ranks #1 out of the 42 assets we track against PEO. Twelve-month performance is nearly a tie, at +41.6% for PEO and +44.0% for XLE.
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.
PEO vs XLE: side by side
| PEO (Adams Natural Resources Fund, Inc.) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +41.6% | +44.0% |
| 5-year return | +179.3% | +206.7% |
| Volatility (ann.) | 20.2% | 23.1% |
| Beta vs S&P 500 | 0.30 | 0.27 |
| Max drawdown (3Y) | -18.9% | -20.1% |
| Market cap | $0.8B | – |
| P/E (trailing) | 4.8 | – |
| Dividend yield | 7.09% | 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 | PEO | XLE |
|---|---|---|
| 2022 | +41.8% | +64.3% |
| 2023 | +0.9% | -0.6% |
| 2024 | +13.6% | +5.6% |
| 2025 | +10.0% | +7.9% |
| 2026 | +38.5% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PEO and XLE good diversifiers for each other?
No. With a correlation of 0.95, PEO and XLE move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between PEO and XLE?
Using weekly returns as of 2026-08-27: 0.95 over 3 years, with 0.93 over the last year and 0.96 over 5 years.
Is XLE a good diversifier for PEO?
No. With a correlation of 0.95, PEO and XLE move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.95 mean?
On the −1 to +1 scale, 0.95 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
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Related comparisons
Hubs: PEO correlations · XLE correlations
