CSCO vs XLK: Correlation
How closely do Cisco (CSCO) and Technology Select Sector SPDR Fund (XLK) trade together? Their weekly returns over three years give a correlation of 0.44, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CSCO and XLK?
Across a 3-year window, the weekly returns of CSCO and XLK correlate at 0.44, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.30 versus 0.44 over 3 years. Stretching to 5 years gives 0.49, with an annualized covariance of 280.1 %².
Among the 30 assets we track against CSCO, XLK ranks #12 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months CSCO outperformed by 23.9 percentage points (+67.3% for CSCO against +43.4% for XLK). The relationship is regime-dependent: the rolling one-year correlation swung between 0.16 and 0.80 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.
CSCO vs XLK: side by side
| CSCO (Cisco) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +67.3% | +43.4% |
| 5-year return | +118.1% | +145.2% |
| Volatility (ann.) | 26.4% | 24.0% |
| Beta vs S&P 500 | 0.84 | 1.50 |
| Max drawdown (3Y) | -20.2% | -25.7% |
| Market cap | $442.0B | – |
| P/E (trailing) | 33.8 | – |
| Dividend yield | 1.48% | 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 | CSCO | XLK |
|---|---|---|
| 2022 | -22.5% | -27.7% |
| 2023 | +9.3% | +56.0% |
| 2024 | +21.0% | +21.6% |
| 2025 | +33.5% | +24.6% |
| 2026 | +47.7% | +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 CSCO at a 2.97% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are CSCO and XLK good diversifiers for each other?
Reasonably. At 0.44, CSCO and XLK keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between CSCO and XLK?
The CSCO/XLK correlation stands at 0.44 on a 3-year window (1 year: 0.30, 5 years: 0.49), computed from weekly returns as of 2026-08-27.
Is XLK a good diversifier for CSCO?
Reasonably. At 0.44, CSCO and XLK keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.44 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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Related comparisons
Hubs: CSCO correlations · XLK correlations
