VLO vs XLE: Correlation
Measured on weekly returns over the past three years, Valero Energy (VLO) 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 VLO and XLE?
Across a 3-year window, the weekly returns of VLO and XLE correlate at 0.76, strong. The relationship has been stable: the 1-year correlation (0.68) sits close to the 3-year figure. Stretching to 5 years gives 0.77, with an annualized covariance of 610.5 %².
By 3-year correlation, XLE places #6 of the 28 assets tracked against VLO. Correlation aside, the last 12 months split them widely, with VLO ahead by 90.8 points (+134.8% versus +44.0%). The link looks structural: the rolling one-year correlation barely moved, holding between 0.65 and 0.86. One caveat on sizing: VLO is 1.5 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.
VLO vs XLE: side by side
| VLO (Valero Energy) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +134.8% | +44.0% |
| 5-year return | +512.9% | +206.7% |
| Volatility (ann.) | 34.8% | 23.1% |
| Beta vs S&P 500 | 0.55 | 0.27 |
| Max drawdown (3Y) | -41.2% | -20.1% |
| Market cap | $99.8B | – |
| P/E (trailing) | 14.5 | – |
| Dividend yield | 1.34% | 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 | VLO | XLE |
|---|---|---|
| 2022 | +75.0% | +64.3% |
| 2023 | +5.9% | -0.6% |
| 2024 | -3.0% | +5.6% |
| 2025 | +37.0% | +7.9% |
| 2026 | +116.1% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
VLO represents 5.05% of XLE's portfolio, so part of any move in XLE is VLO itself, and the correlation between them is partly mechanical.
Are VLO 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 VLO and XLE?
As of 2026-08-27, the correlation of weekly returns between VLO and XLE is 0.76 over 3 years, 0.68 over 1 year and 0.77 over 5 years.
Is XLE a good diversifier for VLO?
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/vlo-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vlo-vs-xle/)
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Related comparisons
Hubs: VLO correlations · XLE correlations
