TALO vs XLE: Correlation
Measured on weekly returns over the past three years, Talos Energy, Inc. (TALO) and Energy Select Sector SPDR Fund (XLE) carry a correlation of 0.76, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TALO and XLE?
Across a 3-year window, the weekly returns of TALO and XLE correlate at 0.76, strong. The relationship has been stable: the 1-year correlation (0.76) sits close to the 3-year figure. Stretching to 5 years gives 0.76, with an annualized covariance of 796.1 %².
By 3-year correlation, XLE places #5 of the 10 assets tracked against TALO. The last year tells two different stories: TALO led by 31.2 percentage points, +75.2% for TALO against +44.0% for XLE. One caveat on sizing: TALO is 2.0 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
TALO vs XLE: side by side
| TALO (Talos Energy, Inc.) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +75.2% | +44.0% |
| 5-year return | +37.6% | +206.7% |
| Volatility (ann.) | 45.1% | 23.1% |
| Beta vs S&P 500 | 0.35 | 0.27 |
| Max drawdown (3Y) | -63.2% | -20.1% |
| Market cap | $2.8B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 2.55% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $39.2B |
| Sector / category | US Listed | 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 | TALO | XLE |
|---|---|---|
| 2022 | +92.7% | +64.3% |
| 2023 | -24.6% | -0.6% |
| 2024 | -31.8% | +5.6% |
| 2025 | +13.5% | +7.9% |
| 2026 | +51.8% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TALO and XLE good diversifiers for each other?
Somewhat, no more. With 0.76 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between TALO and XLE?
The TALO/XLE correlation stands at 0.76 on a 3-year window (1 year: 0.76, 5 years: 0.76), computed from weekly returns as of 2026-08-27.
Is XLE a good diversifier for TALO?
Somewhat, no more. With 0.76 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.76 mean?
On the −1 to +1 scale, 0.76 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/talo-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/talo-vs-xle/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: TALO correlations · XLE correlations
