IT vs XLK: Correlation
Measured on weekly returns over the past three years, Gartner (IT) and Technology Select Sector SPDR Fund (XLK) carry a correlation of 0.28, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IT and XLK?
On 3 years of weekly data the IT/XLK correlation comes out at 0.28, weak. The relationship has been stable: the 1-year correlation (0.20) sits close to the 3-year figure. The 5-year figure is 0.39, and annualized covariance runs at 276.5 %².
Within IT's tracked universe of 36 assets, XLK comes in at #23 by 3-year correlation. The last year tells two different stories: XLK led by 63.6 percentage points, -20.2% for IT against +43.4% for XLK. The relationship is regime-dependent: the rolling one-year correlation swung between 0.07 and 0.76 over the past three years, so this pair behaves very differently depending on the market environment. One caveat on sizing: IT is 1.7 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.
IT vs XLK: side by side
| IT (Gartner) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -20.2% | +43.4% |
| 5-year return | -36.0% | +145.2% |
| Volatility (ann.) | 40.6% | 24.0% |
| Beta vs S&P 500 | 0.92 | 1.50 |
| Max drawdown (3Y) | -77.2% | -25.7% |
| Market cap | $12.4B | – |
| P/E (trailing) | 17.4 | – |
| 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 | IT | XLK |
|---|---|---|
| 2022 | +0.5% | -27.7% |
| 2023 | +34.2% | +56.0% |
| 2024 | +7.4% | +21.6% |
| 2025 | -47.9% | +24.6% |
| 2026 | -22.1% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.09% of XLK is IT itself, so the fund partly moves with the stock by construction.
Are IT and XLK good diversifiers for each other?
A fair diversifier. At 0.28, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between IT and XLK?
Using weekly returns as of 2026-08-27: 0.28 over 3 years, with 0.20 over the last year and 0.39 over 5 years.
Is XLK a good diversifier for IT?
A fair diversifier. At 0.28, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.28 mean?
On the −1 to +1 scale, 0.28 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/it-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/it-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IT correlations · XLK correlations
