KLAC vs XLK: Correlation
Measured on weekly returns over the past three years, KLA Corporation (KLAC) and Technology Select Sector SPDR Fund (XLK) carry a correlation of 0.67, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KLAC and XLK?
On 3 years of weekly data the KLAC/XLK correlation comes out at 0.67, strong. The link has loosened recently: the 1-year correlation (0.50) runs below the 3-year figure (0.67). The 5-year figure is 0.71, and annualized covariance runs at 731.9 %².
Within KLAC's tracked universe of 40 assets, XLK comes in at #18 by 3-year correlation. The last year tells two different stories: KLAC led by 64.5 percentage points, +107.9% for KLAC against +43.4% for XLK. The rolling one-year correlation moved between 0.46 and 0.86 over the past three years, a moderate range. Risk is not evenly split, since KLAC carries 1.9 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.
KLAC vs XLK: side by side
| KLAC (KLA Corporation) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +107.9% | +43.4% |
| 5-year return | +463.9% | +145.2% |
| Volatility (ann.) | 45.6% | 24.0% |
| Beta vs S&P 500 | 1.84 | 1.50 |
| Max drawdown (3Y) | -43.6% | -25.7% |
| Market cap | $240.1B | – |
| P/E (trailing) | 50.2 | – |
| Dividend yield | 0.44% | 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 | KLAC | XLK |
|---|---|---|
| 2022 | -11.2% | -27.7% |
| 2023 | +56.0% | +56.0% |
| 2024 | +9.4% | +21.6% |
| 2025 | +94.5% | +24.6% |
| 2026 | +51.8% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
KLAC represents 1.61% of XLK's portfolio, so part of any move in XLK is KLAC itself, and the correlation between them is partly mechanical.
Are KLAC and XLK good diversifiers for each other?
Only partially. A correlation of 0.67 means KLAC and XLK share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between KLAC and XLK?
As of 2026-08-27, the correlation of weekly returns between KLAC and XLK is 0.67 over 3 years, 0.50 over 1 year and 0.71 over 5 years.
Is XLK a good diversifier for KLAC?
Only partially. A correlation of 0.67 means KLAC and XLK share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.67 mean?
A reading of 0.67 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/klac-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/klac-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: KLAC correlations · XLK correlations
