TAC vs XLU: Correlation
TransAlta Corporation (TAC) and Utilities Select Sector SPDR Fund (XLU) show a moderate relationship: their 3-year correlation of weekly returns is 0.42.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TAC and XLU?
On 3 years of weekly data the TAC/XLU correlation comes out at 0.42, moderate. The relationship has been stable: the 1-year correlation (0.46) sits close to the 3-year figure. The 5-year figure is 0.42, and annualized covariance runs at 239.8 %².
By 3-year correlation, XLU places #5 of the 10 assets tracked against TAC. Neither side won the trailing year by much: +4.3% against +4.1%. Risk is not evenly split, since TAC carries 2.3 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.
TAC vs XLU: side by side
| TAC (TransAlta Corporation) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +4.3% | +4.1% |
| 5-year return | +36.9% | +46.3% |
| Volatility (ann.) | 36.2% | 15.8% |
| Beta vs S&P 500 | 0.84 | 0.26 |
| Max drawdown (3Y) | -43.3% | -13.1% |
| Market cap | $4.0B | – |
| P/E (trailing) | – | – |
| Dividend yield | 2.10% | 2.70% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $23.1B |
| Sector / category | US Listed | 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 | TAC | XLU |
|---|---|---|
| 2022 | -18.0% | +1.4% |
| 2023 | -5.6% | -7.2% |
| 2024 | +74.0% | +23.3% |
| 2025 | -9.5% | +16.0% |
| 2026 | -0.7% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TAC and XLU good diversifiers for each other?
Reasonably. At 0.42, TAC and XLU keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between TAC and XLU?
As of 2026-08-27, the correlation of weekly returns between TAC and XLU is 0.42 over 3 years, 0.46 over 1 year and 0.42 over 5 years.
Is XLU a good diversifier for TAC?
Reasonably. At 0.42, TAC and XLU keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.42 mean?
A reading of 0.42 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/tac-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/tac-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: TAC correlations · XLU correlations
