PSX vs VLO: Correlation
Phillips 66 (PSX) and Valero Energy (VLO) show a very strong relationship: their 3-year correlation of weekly returns is 0.85.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PSX and VLO?
Over the past 3 years, PSX and VLO moved with a correlation of 0.85, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.84) sits close to the 3-year figure. Over 5 years the correlation is 0.84, and the annualized covariance of weekly returns is 990.1 %².
Few assets follow PSX as closely as VLO, which ranks #2 of 34 tracked partners. The last year tells two different stories: VLO led by 48.6 percentage points, +86.2% for PSX against +134.8% for VLO. The rolling one-year correlation stayed in a tight band between 0.74 and 0.89 over the past three years, which points to a structural rather than episodic relationship.
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.
PSX vs VLO: side by side
| PSX (Phillips 66) | VLO (Valero Energy) | |
|---|---|---|
| 1-year return | +86.2% | +134.8% |
| 5-year return | +301.8% | +512.9% |
| Volatility (ann.) | 33.4% | 34.8% |
| Beta vs S&P 500 | 0.58 | 0.55 |
| Max drawdown (3Y) | -44.4% | -41.2% |
| Market cap | $96.1B | $99.8B |
| P/E (trailing) | 13.8 | 14.5 |
| Dividend yield | 2.04% | 1.34% |
| Sector / category | Energy | Energy |
Year-by-year returns
| Year | PSX | VLO |
|---|---|---|
| 2022 | +49.6% | +75.0% |
| 2023 | +33.1% | +5.9% |
| 2024 | -11.6% | -3.0% |
| 2025 | +17.5% | +37.0% |
| 2026 | +89.7% | +116.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PSX and VLO good diversifiers for each other?
No. With a correlation of 0.85, PSX and VLO move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between PSX and VLO?
As of 2026-08-27, the correlation of weekly returns between PSX and VLO is 0.85 over 3 years, 0.84 over 1 year and 0.84 over 5 years.
Is VLO a good diversifier for PSX?
No. With a correlation of 0.85, PSX and VLO move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.85 mean?
A reading of 0.85 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: PSX correlations · VLO correlations
