ANET vs XLK: Correlation
Arista Networks (ANET) 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 ANET and XLK?
On 3 years of weekly data the ANET/XLK correlation comes out at 0.65, strong. Lately the two have drifted apart, with the 1-year correlation at 0.46 versus 0.65 over 3 years. The 5-year figure is 0.60, and annualized covariance runs at 762.7 %².
By 3-year correlation, XLK places #11 of the 35 assets tracked against ANET. The trailing year gives ANET the advantage: +50.9% versus +43.4%, a 7.5-point spread. On a rolling one-year basis the correlation drifted between 0.32 and 0.79, a moderate band. Risk is not evenly split, since ANET carries 2.1 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.
ANET vs XLK: side by side
| ANET (Arista Networks) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +50.9% | +43.4% |
| 5-year return | +764.7% | +145.2% |
| Volatility (ann.) | 49.3% | 24.0% |
| Beta vs S&P 500 | 2.20 | 1.50 |
| Max drawdown (3Y) | -50.4% | -25.7% |
| Market cap | $253.6B | – |
| P/E (trailing) | 64.0 | – |
| Dividend yield | 0.00% | 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 | ANET | XLK |
|---|---|---|
| 2022 | -15.6% | -27.7% |
| 2023 | +94.1% | +56.0% |
| 2024 | +87.7% | +21.6% |
| 2025 | +18.5% | +24.6% |
| 2026 | +53.5% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
ANET represents 1.4% of XLK's portfolio, so part of any move in XLK is ANET itself, and the correlation between them is partly mechanical.
Are ANET and XLK good diversifiers for each other?
Only partially. A correlation of 0.65 means ANET and XLK share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between ANET and XLK?
Using weekly returns as of 2026-08-27: 0.65 over 3 years, with 0.46 over the last year and 0.60 over 5 years.
Is XLK a good diversifier for ANET?
Only partially. A correlation of 0.65 means ANET and XLK share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.65 mean?
A reading of 0.65 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/anet-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/anet-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ANET correlations · XLK correlations
