PNW vs XLU: Correlation
Pinnacle West Capital (PNW) and Utilities Select Sector SPDR Fund (XLU) show a strong relationship: their 3-year correlation of weekly returns is 0.75.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PNW and XLU?
Across a 3-year window, the weekly returns of PNW and XLU correlate at 0.75, strong. Little has changed lately, as the 1-year reading of 0.78 lands near the 3-year figure. Stretching to 5 years gives 0.78, with an annualized covariance of 214.5 %².
By 3-year correlation, XLU places #9 of the 36 assets tracked against PNW. The trailing year gives PNW the advantage: +12.4% versus +4.1%, a 8.3-point spread. The link looks structural: the rolling one-year correlation barely moved, holding between 0.63 and 0.82.
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.
PNW vs XLU: side by side
| PNW (Pinnacle West Capital) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +12.4% | +4.1% |
| 5-year return | +59.3% | +46.3% |
| Volatility (ann.) | 18.2% | 15.8% |
| Beta vs S&P 500 | 0.09 | 0.26 |
| Max drawdown (3Y) | -14.4% | -13.1% |
| Market cap | $11.9B | – |
| P/E (trailing) | 18.8 | – |
| Dividend yield | 3.67% | 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 | PNW | XLU |
|---|---|---|
| 2022 | +13.0% | +1.4% |
| 2023 | -1.2% | -7.2% |
| 2024 | +23.5% | +23.3% |
| 2025 | +8.9% | +16.0% |
| 2026 | +13.5% | +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 PNW at a 0.88% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are PNW and XLU good diversifiers for each other?
Somewhat, no more. With 0.75 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between PNW and XLU?
The PNW/XLU correlation stands at 0.75 on a 3-year window (1 year: 0.78, 5 years: 0.78), computed from weekly returns as of 2026-08-27.
Is XLU a good diversifier for PNW?
Somewhat, no more. With 0.75 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.75 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/pnw-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/pnw-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: PNW correlations · XLU correlations
