AWK vs XLK: Correlation
American Water Works (AWK) and Technology Select Sector SPDR Fund (XLK) show a negative relationship: their 3-year correlation of weekly returns is -0.21.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AWK and XLK?
On 3 years of weekly data the AWK/XLK correlation comes out at -0.21, negative, meaning they tend to move in opposite directions. The past 12 months show a weaker link (-0.43) than the 3-year average (-0.21). The 5-year figure is 0.15, and annualized covariance runs at -102.2 %².
By 3-year correlation, XLK places #30 of the 49 assets tracked against AWK. The last year tells two different stories: XLK led by 46.4 percentage points, -3.0% for AWK against +43.4% for XLK. The relationship is regime-dependent: the rolling one-year correlation swung between -0.47 and 0.56 over the past three years, so this pair behaves very differently depending on the market environment.
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.
AWK vs XLK: side by side
| AWK (American Water Works) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -3.0% | +43.4% |
| 5-year return | -16.6% | +145.2% |
| Volatility (ann.) | 20.7% | 24.0% |
| Beta vs S&P 500 | -0.11 | 1.50 |
| Max drawdown (3Y) | -18.8% | -25.7% |
| Market cap | $27.2B | – |
| P/E (trailing) | 23.7 | – |
| Dividend yield | 2.46% | 0.45% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $115.4B |
| Sector / category | Utilities | 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 | AWK | XLK |
|---|---|---|
| 2022 | -17.9% | -27.7% |
| 2023 | -11.7% | +56.0% |
| 2024 | -3.5% | +21.6% |
| 2025 | +7.4% | +24.6% |
| 2026 | +6.9% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AWK and XLK good diversifiers for each other?
Yes. With a correlation of -0.21, AWK and XLK have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between AWK and XLK?
Using weekly returns as of 2026-08-27: -0.21 over 3 years, with -0.43 over the last year and 0.15 over 5 years.
Is XLK a good diversifier for AWK?
Yes. With a correlation of -0.21, AWK and XLK have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.21 mean?
A reading of -0.21 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/awk-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/awk-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: AWK correlations · XLK correlations
