FLEX vs XLK: Correlation
Flex Ltd. (FLEX) and Technology Select Sector SPDR Fund (XLK) show a moderate relationship: their 3-year correlation of weekly returns is 0.57.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FLEX and XLK?
Over the past 3 years, FLEX and XLK moved with a correlation of 0.57, which is moderate. Little has changed lately, as the 1-year reading of 0.57 lands near the 3-year figure. Over 5 years the correlation is 0.57, and the annualized covariance of weekly returns is 691.0 %².
Within FLEX's tracked universe of 45 assets, XLK comes in at #12 by 3-year correlation. Correlation aside, the last 12 months split them widely, with FLEX ahead by 71.2 points (+114.6% versus +43.4%). The relationship is regime-dependent: the rolling one-year correlation swung between 0.23 and 0.79 over the past three years, so this pair behaves very differently depending on the market environment. One caveat on sizing: FLEX is 2.1 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
FLEX vs XLK: side by side
| FLEX (Flex Ltd.) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +114.6% | +43.4% |
| 5-year return | +716.5% | +145.2% |
| Volatility (ann.) | 50.9% | 24.0% |
| Beta vs S&P 500 | 1.70 | 1.50 |
| Max drawdown (3Y) | -40.0% | -25.7% |
| Market cap | $42.6B | – |
| P/E (trailing) | 43.2 | – |
| 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 | FLEX | XLK |
|---|---|---|
| 2022 | +17.1% | -27.7% |
| 2023 | +41.9% | +56.0% |
| 2024 | +67.2% | +21.6% |
| 2025 | +57.4% | +24.6% |
| 2026 | +90.8% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
FLEX represents 0.28% of XLK's portfolio, so part of any move in XLK is FLEX itself, and the correlation between them is partly mechanical.
Are FLEX and XLK good diversifiers for each other?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between FLEX and XLK?
The FLEX/XLK correlation stands at 0.57 on a 3-year window (1 year: 0.57, 5 years: 0.57), computed from weekly returns as of 2026-08-27.
Is XLK a good diversifier for FLEX?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.57 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
$ curl https://www.pairbook.io/api/v1/pairs/flex-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/flex-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: FLEX correlations · XLK correlations
