MCHP vs XLK: Correlation
Measured on weekly returns over the past three years, Microchip Technology (MCHP) and Technology Select Sector SPDR Fund (XLK) carry a correlation of 0.63, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MCHP and XLK?
On 3 years of weekly data the MCHP/XLK correlation comes out at 0.63, strong. Little has changed lately, as the 1-year reading of 0.64 lands near the 3-year figure. The 5-year figure is 0.67, and annualized covariance runs at 709.4 %².
Within MCHP's tracked universe of 44 assets, XLK comes in at #18 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLK outperformed by 27.2 percentage points (+16.2% for MCHP against +43.4% for XLK). Across three years, the rolling one-year figure varied moderately, from 0.49 to 0.78. One caveat on sizing: MCHP is 1.9 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.
MCHP vs XLK: side by side
| MCHP (Microchip Technology) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +16.2% | +43.4% |
| 5-year return | +5.9% | +145.2% |
| Volatility (ann.) | 46.7% | 24.0% |
| Beta vs S&P 500 | 1.97 | 1.50 |
| Max drawdown (3Y) | -63.8% | -25.7% |
| Market cap | $41.0B | – |
| P/E (trailing) | 109.4 | – |
| Dividend yield | 2.46% | 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 | MCHP | XLK |
|---|---|---|
| 2022 | -18.0% | -27.7% |
| 2023 | +30.9% | +56.0% |
| 2024 | -35.0% | +21.6% |
| 2025 | +14.6% | +24.6% |
| 2026 | +20.5% | +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 MCHP at a 0.27% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are MCHP and XLK good diversifiers for each other?
Only partially. A correlation of 0.63 means MCHP 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 MCHP and XLK?
The MCHP/XLK correlation stands at 0.63 on a 3-year window (1 year: 0.64, 5 years: 0.67), computed from weekly returns as of 2026-08-27.
Is XLK a good diversifier for MCHP?
Only partially. A correlation of 0.63 means MCHP 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 0.63 mean?
On the −1 to +1 scale, 0.63 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/mchp-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mchp-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MCHP correlations · XLK correlations
