SRE vs XLU: Correlation
How closely do Sempra (SRE) and Utilities Select Sector SPDR Fund (XLU) trade together? Their weekly returns over three years give a correlation of 0.71, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SRE and XLU?
Over the past 3 years, SRE and XLU moved with a correlation of 0.71, which is strong. Lately the two have moved closer together, with the 1-year correlation at 0.85 versus 0.71 over 3 years. Over 5 years the correlation is 0.76, and the annualized covariance of weekly returns is 267.8 %².
Few assets follow SRE as closely as XLU, which ranks #2 of 30 tracked partners. Neither side won the trailing year by much: +6.0% against +4.1%. The rolling one-year correlation moved between 0.58 and 0.89 over the past three years, a moderate range. Risk is not evenly split, since SRE carries 1.5 times the volatility of the other side.
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.
SRE vs XLU: side by side
| SRE (Sempra) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +6.0% | +4.1% |
| 5-year return | +50.4% | +46.3% |
| Volatility (ann.) | 23.9% | 15.8% |
| Beta vs S&P 500 | 0.38 | 0.26 |
| Max drawdown (3Y) | -31.6% | -13.1% |
| Market cap | $55.4B | – |
| P/E (trailing) | 24.7 | – |
| Dividend yield | 3.06% | 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 | SRE | XLU |
|---|---|---|
| 2022 | +20.3% | +1.4% |
| 2023 | -0.1% | -7.2% |
| 2024 | +21.1% | +23.3% |
| 2025 | +3.9% | +16.0% |
| 2026 | -2.6% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 4.11% of XLU is SRE itself, so the fund partly moves with the stock by construction.
Are SRE and XLU good diversifiers for each other?
Somewhat, no more. With 0.71 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SRE and XLU?
Using weekly returns as of 2026-08-27: 0.71 over 3 years, with 0.85 over the last year and 0.76 over 5 years.
Is XLU a good diversifier for SRE?
Somewhat, no more. With 0.71 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.71 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/sre-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/sre-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SRE correlations · XLU correlations
