CRM vs XLK: Correlation
Measured on weekly returns over the past three years, Salesforce (CRM) and Technology Select Sector SPDR Fund (XLK) carry a correlation of 0.44, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CRM and XLK?
On 3 years of weekly data the CRM/XLK correlation comes out at 0.44, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.21 versus 0.44 over 3 years. The 5-year figure is 0.58, and annualized covariance runs at 401.6 %².
Among the 68 assets we track against CRM, XLK ranks #56 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLK outperformed by 41.8 percentage points (+1.6% for CRM against +43.4% for XLK). This link changes with the market regime, having swung between 0.21 and 0.79 on a rolling one-year basis. Note the risk asymmetry: CRM runs 1.6 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.
CRM vs XLK: side by side
| CRM (Salesforce) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +1.6% | +43.4% |
| 5-year return | -3.2% | +145.2% |
| Volatility (ann.) | 37.6% | 24.0% |
| Beta vs S&P 500 | 1.21 | 1.50 |
| Max drawdown (3Y) | -58.7% | -25.7% |
| Market cap | $207.4B | – |
| P/E (trailing) | 18.8 | – |
| 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 | CRM | XLK |
|---|---|---|
| 2022 | -47.8% | -27.7% |
| 2023 | +98.5% | +56.0% |
| 2024 | +27.8% | +21.6% |
| 2025 | -20.2% | +24.6% |
| 2026 | -4.4% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 1.13% of XLK is CRM itself, so the fund partly moves with the stock by construction.
Are CRM and XLK good diversifiers for each other?
Reasonably. At 0.44, CRM and XLK keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between CRM and XLK?
As of 2026-08-27, the correlation of weekly returns between CRM and XLK is 0.44 over 3 years, 0.21 over 1 year and 0.58 over 5 years.
Is XLK a good diversifier for CRM?
Reasonably. At 0.44, CRM and XLK keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.44 mean?
On the −1 to +1 scale, 0.44 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/crm-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/crm-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: CRM correlations · XLK correlations
