CTSH vs XLK: Correlation
Cognizant (CTSH) and Technology Select Sector SPDR Fund (XLK) show a weak relationship: their 3-year correlation of weekly returns is 0.27.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CTSH and XLK?
On 3 years of weekly data the CTSH/XLK correlation comes out at 0.27, weak. The past 12 months show a weaker link (0.08) than the 3-year average (0.27). The 5-year figure is 0.42, and annualized covariance runs at 212.3 %².
Within CTSH's tracked universe of 44 assets, XLK comes in at #34 by 3-year correlation. The last year tells two different stories: XLK led by 53.2 percentage points, -9.8% for CTSH against +43.4% for XLK. The relationship is regime-dependent: the rolling one-year correlation swung between 0.09 and 0.65 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.
CTSH vs XLK: side by side
| CTSH (Cognizant) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -9.8% | +43.4% |
| 5-year return | -9.6% | +145.2% |
| Volatility (ann.) | 32.3% | 24.0% |
| Beta vs S&P 500 | 0.89 | 1.50 |
| Max drawdown (3Y) | -56.1% | -25.7% |
| Market cap | $28.7B | – |
| P/E (trailing) | 13.3 | – |
| Dividend yield | 2.09% | 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 | CTSH | XLK |
|---|---|---|
| 2022 | -34.5% | -27.7% |
| 2023 | +34.4% | +56.0% |
| 2024 | +3.5% | +21.6% |
| 2025 | +9.7% | +24.6% |
| 2026 | -21.8% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.2% of XLK is CTSH itself, so the fund partly moves with the stock by construction.
Are CTSH and XLK good diversifiers for each other?
A fair diversifier. At 0.27, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between CTSH and XLK?
Using weekly returns as of 2026-08-27: 0.27 over 3 years, with 0.08 over the last year and 0.42 over 5 years.
Is XLK a good diversifier for CTSH?
A fair diversifier. At 0.27, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.27 mean?
A reading of 0.27 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/ctsh-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ctsh-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: CTSH correlations · XLK correlations
