LITE vs XLK: Correlation
Lumentum (LITE) and Technology Select Sector SPDR Fund (XLK) show a moderate relationship: their 3-year correlation of weekly returns is 0.45.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LITE and XLK?
Over the past 3 years, LITE and XLK moved with a correlation of 0.45, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.13 versus 0.45 over 3 years. Over 5 years the correlation is 0.45, and the annualized covariance of weekly returns is 708.0 %².
By 3-year correlation, XLK places #21 of the 34 assets tracked against LITE. Correlation aside, the last 12 months split them widely, with LITE ahead by 616.4 points (+659.8% versus +43.4%). This link changes with the market regime, having swung between -0.04 and 0.77 on a rolling one-year basis. Risk is not evenly split, since LITE carries 2.7 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.
LITE vs XLK: side by side
| LITE (Lumentum) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +659.8% | +43.4% |
| 5-year return | +998.1% | +145.2% |
| Volatility (ann.) | 65.5% | 24.0% |
| Beta vs S&P 500 | 2.36 | 1.50 |
| Max drawdown (3Y) | -50.6% | -25.7% |
| Market cap | $85.8B | – |
| P/E (trailing) | – | – |
| 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 | LITE | XLK |
|---|---|---|
| 2022 | -50.7% | -27.7% |
| 2023 | +0.5% | +56.0% |
| 2024 | +60.1% | +21.6% |
| 2025 | +339.1% | +24.6% |
| 2026 | +159.4% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLK holds LITE at a 0.49% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are LITE and XLK good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.45 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between LITE and XLK?
The LITE/XLK correlation stands at 0.45 on a 3-year window (1 year: 0.13, 5 years: 0.45), computed from weekly returns as of 2026-08-27.
Is XLK a good diversifier for LITE?
Yes, to a useful degree: a correlation of 0.45 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.45 mean?
A reading of 0.45 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/lite-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/lite-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: LITE correlations · XLK correlations
