HOOD vs XLK: Correlation
Robinhood Markets (HOOD) and Technology Select Sector SPDR Fund (XLK) show a moderate relationship: their 3-year correlation of weekly returns is 0.59.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HOOD and XLK?
Across a 3-year window, the weekly returns of HOOD and XLK correlate at 0.59, moderate. The relationship has been stable: the 1-year correlation (0.65) sits close to the 3-year figure. Stretching to 5 years gives 0.53, with an annualized covariance of 1005.4 %².
By 3-year correlation, XLK places #11 of the 39 assets tracked against HOOD. Correlation aside, the last 12 months split them widely, with XLK ahead by 36.8 points (+6.6% versus +43.4%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.18 to 0.79. Risk is not evenly split, since HOOD carries 3.0 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.
HOOD vs XLK: side by side
| HOOD (Robinhood Markets) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +6.6% | +43.4% |
| 5-year return | +151.5% | +145.2% |
| Volatility (ann.) | 71.4% | 24.0% |
| Beta vs S&P 500 | 2.88 | 1.50 |
| Max drawdown (3Y) | -57.3% | -25.7% |
| Market cap | $98.7B | – |
| P/E (trailing) | 48.1 | – |
| Dividend yield | 0.00% | 0.45% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $115.4B |
| Sector / category | Financials | 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 | HOOD | XLK |
|---|---|---|
| 2022 | -54.2% | -27.7% |
| 2023 | +56.5% | +56.0% |
| 2024 | +192.5% | +21.6% |
| 2025 | +203.5% | +24.6% |
| 2026 | -3.0% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HOOD and XLK good diversifiers for each other?
To a limited degree. At 0.59 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 HOOD and XLK?
As of 2026-08-27, the correlation of weekly returns between HOOD and XLK is 0.59 over 3 years, 0.65 over 1 year and 0.53 over 5 years.
Is XLK a good diversifier for HOOD?
To a limited degree. At 0.59 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 0.59 mean?
On the −1 to +1 scale, 0.59 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/hood-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/hood-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: HOOD correlations · XLK correlations
