SO vs XEL: Correlation
How closely do Southern Company (SO) and Xcel Energy (XEL) trade together? Their weekly returns over three years give a correlation of 0.63, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SO and XEL?
Across a 3-year window, the weekly returns of SO and XEL correlate at 0.63, strong. The link has tightened recently: the 1-year correlation (0.82) runs above the 3-year figure (0.63). Stretching to 5 years gives 0.74, with an annualized covariance of 214.6 %².
Among the 48 assets we track against SO, XEL ranks #21 by 3-year correlation. The trailing year gives XEL the advantage: -1.4% versus +9.2%, a 10.6-point spread. The rolling one-year correlation moved between 0.40 and 0.85 over the past three years, a moderate range.
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.
SO vs XEL: side by side
| SO (Southern Company) | XEL (Xcel Energy) | |
|---|---|---|
| 1-year return | -1.4% | +9.2% |
| 5-year return | +62.6% | +31.1% |
| Volatility (ann.) | 16.5% | 20.7% |
| Beta vs S&P 500 | -0.02 | 0.09 |
| Max drawdown (3Y) | -15.0% | -24.0% |
| Market cap | $102.4B | $48.2B |
| P/E (trailing) | 21.7 | 21.3 |
| Dividend yield | 3.32% | 2.99% |
| Sector / category | Utilities | Utilities |
Year-by-year returns
| Year | SO | XEL |
|---|---|---|
| 2022 | +8.2% | +6.4% |
| 2023 | +2.2% | -8.7% |
| 2024 | +21.7% | +12.3% |
| 2025 | +9.5% | +13.9% |
| 2026 | +4.6% | +6.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SO and XEL good diversifiers for each other?
Only partially. A correlation of 0.63 means SO and XEL share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between SO and XEL?
As of 2026-08-27, the correlation of weekly returns between SO and XEL is 0.63 over 3 years, 0.82 over 1 year and 0.74 over 5 years.
Is XEL a good diversifier for SO?
Only partially. A correlation of 0.63 means SO and XEL share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.63 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/so-vs-xel.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/so-vs-xel/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SO correlations · XEL correlations
