DDOG vs XLK: Correlation
Datadog (DDOG) and Technology Select Sector SPDR Fund (XLK) show a moderate relationship: their 3-year correlation of weekly returns is 0.45.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DDOG and XLK?
Over the past 3 years, DDOG and XLK moved with a correlation of 0.45, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.31 versus 0.45 over 3 years. Over 5 years the correlation is 0.55, and the annualized covariance of weekly returns is 588.0 %².
Among the 30 assets we track against DDOG, XLK ranks #17 by 3-year correlation. Correlation aside, the last 12 months split them widely, with DDOG ahead by 41.0 points (+84.4% versus +43.4%). The rolling one-year correlation moved between 0.29 and 0.65 over the past three years, a moderate range. Note the risk asymmetry: DDOG runs 2.3 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.
DDOG vs XLK: side by side
| DDOG (Datadog) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +84.4% | +43.4% |
| 5-year return | +77.8% | +145.2% |
| Volatility (ann.) | 54.6% | 24.0% |
| Beta vs S&P 500 | 1.37 | 1.50 |
| Max drawdown (3Y) | -48.6% | -25.7% |
| Market cap | $87.2B | – |
| P/E (trailing) | 458.4 | – |
| 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 | DDOG | XLK |
|---|---|---|
| 2022 | -58.7% | -27.7% |
| 2023 | +65.1% | +56.0% |
| 2024 | +17.7% | +21.6% |
| 2025 | -4.8% | +24.6% |
| 2026 | +78.6% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
DDOG represents 0.5% of XLK's portfolio, so part of any move in XLK is DDOG itself, and the correlation between them is partly mechanical.
Are DDOG and XLK good diversifiers for each other?
Reasonably. At 0.45, DDOG and XLK keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between DDOG and XLK?
The DDOG/XLK correlation stands at 0.45 on a 3-year window (1 year: 0.31, 5 years: 0.55), computed from weekly returns as of 2026-08-27.
Is XLK a good diversifier for DDOG?
Reasonably. At 0.45, DDOG and XLK keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.45 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: DDOG correlations · XLK correlations
