WTI vs XLE: Correlation
Measured on weekly returns over the past three years, W&T Offshore, Inc. (WTI) and Energy Select Sector SPDR Fund (XLE) carry a correlation of 0.67, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are WTI and XLE?
On 3 years of weekly data the WTI/XLE correlation comes out at 0.67, strong. Recent behaviour matches the longer record: 0.63 over 1 year against 0.67 over 3. The 5-year figure is 0.73, and annualized covariance runs at 1002.3 %².
Among the 16 assets we track against WTI, XLE ranks #5 by 3-year correlation. The last year tells two different stories: WTI led by 60.9 percentage points, +104.9% for WTI against +44.0% for XLE. Note the risk asymmetry: WTI runs 2.8 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
WTI vs XLE: side by side
| WTI (W&T Offshore, Inc.) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +104.9% | +44.0% |
| 5-year return | +18.8% | +206.7% |
| Volatility (ann.) | 64.6% | 23.1% |
| Beta vs S&P 500 | 0.24 | 0.27 |
| Max drawdown (3Y) | -74.3% | -20.1% |
| Market cap | $0.6B | – |
| P/E (trailing) | – | – |
| Dividend yield | 1.12% | 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 | WTI | XLE |
|---|---|---|
| 2022 | +72.8% | +64.3% |
| 2023 | -41.4% | -0.6% |
| 2024 | -48.2% | +5.6% |
| 2025 | +0.6% | +7.9% |
| 2026 | +126.4% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are WTI and XLE good diversifiers for each other?
To a limited degree. At 0.67 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between WTI and XLE?
Using weekly returns as of 2026-08-27: 0.67 over 3 years, with 0.63 over the last year and 0.73 over 5 years.
Is XLE a good diversifier for WTI?
To a limited degree. At 0.67 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.67 mean?
On the −1 to +1 scale, 0.67 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/wti-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/wti-vs-xle/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: WTI correlations · XLE correlations
