TPL vs XLE: Correlation
Texas Pacific Land Corporation (TPL) and Energy Select Sector SPDR Fund (XLE) show a moderate relationship: their 3-year correlation of weekly returns is 0.53.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TPL and XLE?
Over the past 3 years, TPL and XLE moved with a correlation of 0.53, which is moderate. Recent behaviour matches the longer record: 0.50 over 1 year against 0.53 over 3. Over 5 years the correlation is 0.55, and the annualized covariance of weekly returns is 609.3 %².
By 3-year correlation, XLE places #4 of the 29 assets tracked against TPL. The last year tells two different stories: XLE led by 21.2 percentage points, +22.8% for TPL against +44.0% for XLE. On a rolling one-year basis the correlation drifted between 0.31 and 0.69, a moderate band. Risk is not evenly split, since TPL carries 2.2 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.
TPL vs XLE: side by side
| TPL (Texas Pacific Land Corporation) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.8% | +44.0% |
| 5-year return | +149.6% | +206.7% |
| Volatility (ann.) | 50.0% | 23.1% |
| Beta vs S&P 500 | 0.62 | 0.27 |
| Max drawdown (3Y) | -52.2% | -20.1% |
| Market cap | $25.5B | – |
| P/E (trailing) | 47.2 | – |
| Dividend yield | 0.61% | 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 | TPL | XLE |
|---|---|---|
| 2022 | +91.3% | +64.3% |
| 2023 | -32.4% | -0.6% |
| 2024 | +115.3% | +5.6% |
| 2025 | -21.6% | +7.9% |
| 2026 | +29.1% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
TPL represents 1.27% of XLE's portfolio, so part of any move in XLE is TPL itself, and the correlation between them is partly mechanical.
Are TPL and XLE good diversifiers for each other?
Only partially. A correlation of 0.53 means TPL and XLE 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 TPL and XLE?
As of 2026-08-27, the correlation of weekly returns between TPL and XLE is 0.53 over 3 years, 0.50 over 1 year and 0.55 over 5 years.
Is XLE a good diversifier for TPL?
Only partially. A correlation of 0.53 means TPL and XLE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.53 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/tpl-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/tpl-vs-xle/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: TPL correlations · XLE correlations
