WMB vs XLE: Correlation
Measured on weekly returns over the past three years, Williams Companies (WMB) and Energy Select Sector SPDR Fund (XLE) carry a correlation of 0.56, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are WMB and XLE?
Across a 3-year window, the weekly returns of WMB and XLE correlate at 0.56, moderate. The relationship has been stable: the 1-year correlation (0.48) sits close to the 3-year figure. Stretching to 5 years gives 0.68, with an annualized covariance of 310.3 %².
Among the 32 assets we track against WMB, XLE ranks #15 by 3-year correlation. On 12-month performance XLE holds a 10.9-point edge, +33.1% against +44.0%. This link changes with the market regime, having swung between 0.22 and 0.81 on a rolling one-year basis.
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.
WMB vs XLE: side by side
| WMB (Williams Companies) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +33.1% | +44.0% |
| 5-year return | +279.9% | +206.7% |
| Volatility (ann.) | 24.0% | 23.1% |
| Beta vs S&P 500 | 0.34 | 0.27 |
| Max drawdown (3Y) | -12.4% | -20.1% |
| Market cap | $90.7B | – |
| P/E (trailing) | 29.7 | – |
| Dividend yield | 2.76% | 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 | WMB | XLE |
|---|---|---|
| 2022 | +32.8% | +64.3% |
| 2023 | +11.9% | -0.6% |
| 2024 | +62.3% | +5.6% |
| 2025 | +14.9% | +7.9% |
| 2026 | +25.2% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
WMB represents 3.84% of XLE's portfolio, so part of any move in XLE is WMB itself, and the correlation between them is partly mechanical.
Are WMB and XLE good diversifiers for each other?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between WMB and XLE?
The WMB/XLE correlation stands at 0.56 on a 3-year window (1 year: 0.48, 5 years: 0.68), computed from weekly returns as of 2026-08-27.
Is XLE a good diversifier for WMB?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.56 mean?
On the −1 to +1 scale, 0.56 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.
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Related comparisons
Hubs: WMB correlations · XLE correlations
