CDW vs XLK: Correlation
Measured on weekly returns over the past three years, CDW Corporation (CDW) and Technology Select Sector SPDR Fund (XLK) carry a correlation of 0.36, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CDW and XLK?
On 3 years of weekly data the CDW/XLK correlation comes out at 0.36, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.07 versus 0.36 over 3 years. The 5-year figure is 0.45, and annualized covariance runs at 292.5 %².
Within CDW's tracked universe of 40 assets, XLK comes in at #30 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLK ahead by 51.4 points (-8.0% versus +43.4%). The relationship is regime-dependent: the rolling one-year correlation swung between 0.04 and 0.68 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.
CDW vs XLK: side by side
| CDW (CDW Corporation) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -8.0% | +43.4% |
| 5-year return | -20.5% | +145.2% |
| Volatility (ann.) | 34.2% | 24.0% |
| Beta vs S&P 500 | 1.01 | 1.50 |
| Max drawdown (3Y) | -60.4% | -25.7% |
| Market cap | $18.6B | – |
| P/E (trailing) | 17.0 | – |
| Dividend yield | 1.78% | 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 | CDW | XLK |
|---|---|---|
| 2022 | -11.7% | -27.7% |
| 2023 | +28.8% | +56.0% |
| 2024 | -22.6% | +21.6% |
| 2025 | -20.6% | +24.6% |
| 2026 | +11.1% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLK holds CDW at a 0.12% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are CDW and XLK good diversifiers for each other?
A fair diversifier. At 0.36, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between CDW and XLK?
The CDW/XLK correlation stands at 0.36 on a 3-year window (1 year: 0.07, 5 years: 0.45), computed from weekly returns as of 2026-08-27.
Is XLK a good diversifier for CDW?
A fair diversifier. At 0.36, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.36 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
$ curl https://www.pairbook.io/api/v1/pairs/cdw-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cdw-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: CDW correlations · XLK correlations
