AMAT vs XLK: Correlation
Applied Materials (AMAT) and Technology Select Sector SPDR Fund (XLK) show a strong relationship: their 3-year correlation of weekly returns is 0.65.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AMAT and XLK?
On 3 years of weekly data the AMAT/XLK correlation comes out at 0.65, strong. The link has loosened recently: the 1-year correlation (0.47) runs below the 3-year figure (0.65). The 5-year figure is 0.72, and annualized covariance runs at 681.8 %².
Among the 34 assets we track against AMAT, XLK ranks #16 by 3-year correlation. Correlation aside, the last 12 months split them widely, with AMAT ahead by 151.6 points (+195.0% versus +43.4%). On a rolling one-year basis the correlation drifted between 0.42 and 0.83, a moderate band. Note the risk asymmetry: AMAT runs 1.8 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.
AMAT vs XLK: side by side
| AMAT (Applied Materials) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +195.0% | +43.4% |
| 5-year return | +269.5% | +145.2% |
| Volatility (ann.) | 43.5% | 24.0% |
| Beta vs S&P 500 | 1.69 | 1.50 |
| Max drawdown (3Y) | -49.9% | -25.7% |
| Market cap | $382.8B | – |
| P/E (trailing) | 41.3 | – |
| Dividend yield | 0.41% | 0.45% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $115.4B |
| Sector / category | Information Technology | Sector ETF |
On the fund side, XLK sits in the Technology category at State Street Investment Management, with $115.4B under management, 73 holdings, a 0.08% expense ratio, a 0.45% trailing dividend yield.
Year-by-year returns
| Year | AMAT | XLK |
|---|---|---|
| 2022 | -37.5% | -27.7% |
| 2023 | +68.0% | +56.0% |
| 2024 | +1.1% | +21.6% |
| 2025 | +59.6% | +24.6% |
| 2026 | +88.4% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
AMAT represents 2.55% of XLK's portfolio, so part of any move in XLK is AMAT itself, and the correlation between them is partly mechanical.
Are AMAT and XLK good diversifiers for each other?
To a limited degree. At 0.65 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 AMAT and XLK?
As of 2026-08-27, the correlation of weekly returns between AMAT and XLK is 0.65 over 3 years, 0.47 over 1 year and 0.72 over 5 years.
Is XLK a good diversifier for AMAT?
To a limited degree. At 0.65 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 0.65 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
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[](https://www.pairbook.io/pair/amat-vs-xlk/)
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Related comparisons
Hubs: AMAT correlations · XLK correlations
