TALO vs. XOP

Last updated Jul 11, 2026

TALO (Talos Energy Inc.) is a stock, while XOP (SPDR S&P Oil & Gas Exploration & Production ETF) is Energy Equities fund tracking the S&P Oil & Gas Exploration & Production Select Industry. Over the past 5 years, TALO returned -1.47%/yr vs 13.75%/yr for XOP. A 0.80 correlation means they provide meaningful diversification when combined.

Performance

TALO vs. XOP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Talos Energy Inc. (TALO) and SPDR S&P Oil & Gas Exploration & Production ETF (XOP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TALO achieves a 22.50% return, which is significantly lower than XOP's 26.71% return.

TALO

• 1D: -1.68%
• 1M: -8.78%
• 6M: 24.54%
• YTD: 22.50%
• 1Y: 47.86%
• 3Y*: -1.99%
• 5Y*: -1.47%
• 10Y*: —

XOP

• 1D: -0.56%
• 1M: -2.49%
• 6M: 25.57%
• YTD: 26.71%
• 1Y: 21.93%
• 3Y*: 8.56%
• 5Y*: 13.75%
• 10Y*: 2.97%

*Multi-year figures are annualized to reflect compound growth (CAGR)

TALO vs. XOP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
TALO Talos Energy Inc.	22.50%	13.49%	-31.76%	-24.63%	92.65%	18.93%	-72.67%	84.74%	-53.37%
XOP SPDR S&P Oil & Gas Exploration & Production ETF	26.71%	-2.15%	-1.00%	3.56%	45.37%	66.74%	-36.40%	-9.44%	-35.54%

Correlation

The correlation between TALO and XOP is 0.86, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.80
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (All Time) Calculated using the full available price history since May 10, 2018	0.80

The correlation between TALO and XOP has been stable across timeframes, ranging from 0.80 to 0.86 - a consistent structural relationship.

Return for Risk

TALO vs. XOP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TALO

TALO Risk / Return Rank: 76
TALO Sharpe Ratio Rank: 76
TALO Sortino Ratio Rank: 70
TALO Omega Ratio Rank: 70
TALO Calmar Ratio Rank: 81
TALO Martin Ratio Rank: 83

XOP

XOP Risk / Return Rank: 27
XOP Sharpe Ratio Rank: 27
XOP Sortino Ratio Rank: 26
XOP Omega Ratio Rank: 26
XOP Calmar Ratio Rank: 30
XOP Martin Ratio Rank: 27

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TALO vs. XOP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Talos Energy Inc. (TALO) and SPDR S&P Oil & Gas Exploration & Production ETF (XOP). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	TALO	XOP	Difference
Sharpe ratio: Return per unit of total volatility	1.01	0.81	+0.20
Sortino ratio: Return per unit of downside risk	1.50	1.22	+0.28
Omega ratio: Gain probability vs. loss probability	1.19	1.15	+0.04
Calmar ratio: Return relative to maximum drawdown	2.24	1.23	+1.01
Martin ratio: Return relative to average drawdown	6.02	3.01	+3.01

TALO vs. XOP - Sharpe Ratio Comparison

The current TALO Sharpe Ratio is 1.01, which is comparable to the XOP Sharpe Ratio of 0.81. The chart below compares the historical Sharpe Ratios of TALO and XOP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

TALO vs. XOP - Drawdown Comparison

The maximum TALO drawdown since its inception was -86.34%, roughly equal to the maximum XOP drawdown of -90.27%. Use the drawdown chart below to compare losses from any high point for TALO and XOP.

Drawdown Indicators

	TALO	XOP	Difference
Max Drawdown Largest peak-to-trough decline	-86.34%	-90.27%	+3.93%
Max Drawdown (1Y) Largest decline over 1 year	-22.18%	-18.50%	-3.68%
Max Drawdown (3Y) Largest decline over 3 years	-63.16%	-34.98%	-28.18%
Max Drawdown (5Y) Largest decline over 5 years	-74.63%	-34.98%	-39.65%
Max Drawdown (10Y) Largest decline over 10 years	—	-82.61%	—
Current Drawdown Current decline from peak	-63.97%	-40.77%	-23.20%
Average Drawdown Average peak-to-trough decline	-58.61%	-42.57%	-16.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.25%	7.54%	+0.71%

Volatility

TALO vs. XOP - Volatility Comparison

Talos Energy Inc. (TALO) has a higher volatility of 14.27% compared to SPDR S&P Oil & Gas Exploration & Production ETF (XOP) at 7.88%. This indicates that TALO's price experiences larger fluctuations and is considered to be riskier than XOP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TALO	XOP	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.27%	7.88%	+6.39%
Volatility (6M) Calculated over the trailing 6-month period	38.68%	22.07%	+16.61%
Volatility (1Y) Calculated over the trailing 1-year period	49.11%	28.03%	+21.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	55.73%	33.73%	+22.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	64.23%	40.17%	+24.06%

Dividends

TALO vs. XOP - Dividend Comparison

TALO has not paid dividends to shareholders, while XOP's dividend yield for the trailing twelve months is around 2.05%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TALO Talos Energy Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
XOP SPDR S&P Oil & Gas Exploration & Production ETF	2.05%	2.62%	2.45%	2.63%	2.47%	1.61%	2.34%	1.47%	0.99%	0.76%	0.76%	2.21%

Frequently Asked Questions

Can I hold both TALO and XOP in my portfolio?

TALO and XOP have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TALO or XOP?

TALO has higher volatility (14.27%) compared to XOP (7.88%). In terms of maximum drawdown, TALO dropped -86.34% vs XOP's -90.27%.

Which has better risk-adjusted returns?

TALO currently has the higher Sharpe Ratio (1.01 vs 0.81), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.