PPL vs XLU: Correlation
Measured on weekly returns over the past three years, PPL Corporation (PPL) and Utilities Select Sector SPDR Fund (XLU) carry a correlation of 0.81, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PPL and XLU?
Over the past 3 years, PPL and XLU moved with a correlation of 0.81, which is very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.85 lands near the 3-year figure. Over 5 years the correlation is 0.83, and the annualized covariance of weekly returns is 221.9 %².
XLU is one of the assets that tracks PPL most closely: it ranks #2 out of the 44 assets we track against PPL. Over the last 12 months XLU came out ahead by 7.1 percentage points (-3.0% against +4.1%). Across three years, the rolling one-year figure varied moderately, from 0.61 to 0.91.
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.
PPL vs XLU: side by side
| PPL (PPL Corporation) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -3.0% | +4.1% |
| 5-year return | +41.1% | +46.3% |
| Volatility (ann.) | 17.4% | 15.8% |
| Beta vs S&P 500 | 0.13 | 0.26 |
| Max drawdown (3Y) | -13.3% | -13.1% |
| Market cap | $25.9B | – |
| P/E (trailing) | 20.7 | – |
| Dividend yield | 3.18% | 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 | PPL | XLU |
|---|---|---|
| 2022 | +0.4% | +1.4% |
| 2023 | -3.8% | -7.2% |
| 2024 | +24.0% | +23.3% |
| 2025 | +11.4% | +16.0% |
| 2026 | -0.1% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
PPL represents 1.94% of XLU's portfolio, so part of any move in XLU is PPL itself, and the correlation between them is partly mechanical.
Are PPL and XLU good diversifiers for each other?
Not really. At 0.81, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between PPL and XLU?
As of 2026-08-27, the correlation of weekly returns between PPL and XLU is 0.81 over 3 years, 0.85 over 1 year and 0.83 over 5 years.
Is XLU a good diversifier for PPL?
Not really. At 0.81, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.81 mean?
A reading of 0.81 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/ppl-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ppl-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: PPL correlations · XLU correlations
