WTTR vs XLE: Correlation
How closely do Select Water Solutions, Inc. (WTTR) and Energy Select Sector SPDR Fund (XLE) trade together? Their weekly returns over three years give a correlation of 0.62, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are WTTR and XLE?
Across a 3-year window, the weekly returns of WTTR and XLE correlate at 0.62, strong. The link has loosened recently: the 1-year correlation (0.48) runs below the 3-year figure (0.62). Stretching to 5 years gives 0.69, with an annualized covariance of 627.9 %².
Within WTTR's tracked universe of 15 assets, XLE comes in at #4 by 3-year correlation. The last year tells two different stories: WTTR led by 96.4 percentage points, +140.4% for WTTR against +44.0% for XLE. Risk is not evenly split, since WTTR carries 1.9 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.
WTTR vs XLE: side by side
| WTTR (Select Water Solutions, Inc.) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +140.4% | +44.0% |
| 5-year return | +303.0% | +206.7% |
| Volatility (ann.) | 44.1% | 23.1% |
| Beta vs S&P 500 | 0.91 | 0.27 |
| Max drawdown (3Y) | -50.7% | -20.1% |
| Market cap | $2.8B | – |
| P/E (trailing) | 69.8 | – |
| Dividend yield | 1.46% | 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 | WTTR | XLE |
|---|---|---|
| 2022 | +49.2% | +64.3% |
| 2023 | -15.6% | -0.6% |
| 2024 | +79.2% | +5.6% |
| 2025 | -18.3% | +7.9% |
| 2026 | +88.2% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are WTTR and XLE good diversifiers for each other?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between WTTR and XLE?
The WTTR/XLE correlation stands at 0.62 on a 3-year window (1 year: 0.48, 5 years: 0.69), computed from weekly returns as of 2026-08-27.
Is XLE a good diversifier for WTTR?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.62 mean?
On the −1 to +1 scale, 0.62 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/wttr-vs-xle.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/wttr-vs-xle/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: WTTR correlations · XLE correlations
