PSX vs XLE: Correlation
How closely do Phillips 66 (PSX) and Energy Select Sector SPDR Fund (XLE) trade together? Their weekly returns over three years give a correlation of 0.81, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PSX and XLE?
Over the past 3 years, PSX and XLE moved with a correlation of 0.81, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.80 over 1 year against 0.81 over 3. Over 5 years the correlation is 0.81, and the annualized covariance of weekly returns is 624.2 %².
Among the 34 assets we track against PSX, XLE ranks #4 by 3-year correlation. Correlation aside, the last 12 months split them widely, with PSX ahead by 42.2 points (+86.2% versus +44.0%). Stability stands out here, with the rolling one-year correlation confined to 0.74 through 0.88.
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 XLE: side by side
| PSX (Phillips 66) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +86.2% | +44.0% |
| 5-year return | +301.8% | +206.7% |
| Volatility (ann.) | 33.4% | 23.1% |
| Beta vs S&P 500 | 0.58 | 0.27 |
| Max drawdown (3Y) | -44.4% | -20.1% |
| Market cap | $96.1B | – |
| P/E (trailing) | 13.8 | – |
| Dividend yield | 2.04% | 2.55% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $39.2B |
| Sector / category | Energy | 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 | PSX | XLE |
|---|---|---|
| 2022 | +49.6% | +64.3% |
| 2023 | +33.1% | -0.6% |
| 2024 | -11.6% | +5.6% |
| 2025 | +17.5% | +7.9% |
| 2026 | +89.7% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLE holds PSX at a 5.37% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are PSX and XLE good diversifiers for each other?
No. With a correlation of 0.81, PSX and XLE move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between PSX and XLE?
The PSX/XLE correlation stands at 0.81 on a 3-year window (1 year: 0.80, 5 years: 0.81), computed from weekly returns as of 2026-08-27.
Is XLE a good diversifier for PSX?
No. With a correlation of 0.81, PSX and XLE move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.81 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/psx-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/psx-vs-xle/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: PSX correlations · XLE correlations
