DMRC vs XLK: Correlation
How closely do Digimarc Corporation (DMRC) and Technology Select Sector SPDR Fund (XLK) trade together? Their weekly returns over three years give a correlation of 0.51, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DMRC and XLK?
On 3 years of weekly data the DMRC/XLK correlation comes out at 0.51, moderate. Recent behaviour matches the longer record: 0.60 over 1 year against 0.51 over 3. The 5-year figure is 0.45, and annualized covariance runs at 938.5 %².
Among the 16 assets we track against DMRC, XLK ranks #4 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLK outperformed by 69.5 percentage points (-26.1% for DMRC against +43.4% for XLK). Risk is not evenly split, since DMRC carries 3.2 times the volatility of the other side.
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.
DMRC vs XLK: side by side
| DMRC (Digimarc Corporation) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -26.1% | +43.4% |
| 5-year return | -77.7% | +145.2% |
| Volatility (ann.) | 76.3% | 24.0% |
| Beta vs S&P 500 | 2.38 | 1.50 |
| Max drawdown (3Y) | -90.8% | -25.7% |
| Market cap | $0.1B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 0.45% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $115.4B |
| Sector / category | US Listed | 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 | DMRC | XLK |
|---|---|---|
| 2022 | -53.2% | -27.7% |
| 2023 | +95.3% | +56.0% |
| 2024 | +3.7% | +21.6% |
| 2025 | -82.5% | +24.6% |
| 2026 | -4.9% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DMRC and XLK good diversifiers for each other?
To a limited degree. At 0.51 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between DMRC and XLK?
As of 2026-08-27, the correlation of weekly returns between DMRC and XLK is 0.51 over 3 years, 0.60 over 1 year and 0.45 over 5 years.
Is XLK a good diversifier for DMRC?
To a limited degree. At 0.51 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.51 mean?
On the −1 to +1 scale, 0.51 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/dmrc-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/dmrc-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: DMRC correlations · XLK correlations
