IBM vs XLK: Correlation
IBM (IBM) and Technology Select Sector SPDR Fund (XLK) show a moderate relationship: their 3-year correlation of weekly returns is 0.33.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBM and XLK?
On 3 years of weekly data the IBM/XLK correlation comes out at 0.33, moderate. Little has changed lately, as the 1-year reading of 0.36 lands near the 3-year figure. The 5-year figure is 0.36, and annualized covariance runs at 272.9 %².
By 3-year correlation, XLK places #17 of the 28 assets tracked against IBM. Correlation aside, the last 12 months split them widely, with XLK ahead by 43.3 points (+0.1% versus +43.4%). Across three years, the rolling one-year figure varied moderately, from 0.19 to 0.57.
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.
IBM vs XLK: side by side
| IBM (IBM) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +0.1% | +43.4% |
| 5-year return | +117.6% | +145.2% |
| Volatility (ann.) | 34.7% | 24.0% |
| Beta vs S&P 500 | 0.78 | 1.50 |
| Max drawdown (3Y) | -37.5% | -25.7% |
| Market cap | $225.0B | – |
| P/E (trailing) | 20.4 | – |
| Dividend yield | 2.93% | 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 | IBM | XLK |
|---|---|---|
| 2022 | +10.6% | -27.7% |
| 2023 | +21.8% | +56.0% |
| 2024 | +39.3% | +21.6% |
| 2025 | +38.2% | +24.6% |
| 2026 | -17.7% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 1.45% of XLK is IBM itself, so the fund partly moves with the stock by construction.
Are IBM and XLK good diversifiers for each other?
A fair diversifier. At 0.33, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between IBM and XLK?
Using weekly returns as of 2026-08-27: 0.33 over 3 years, with 0.36 over the last year and 0.36 over 5 years.
Is XLK a good diversifier for IBM?
A fair diversifier. At 0.33, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.33 mean?
On the −1 to +1 scale, 0.33 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/ibm-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ibm-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IBM correlations · XLK correlations
