MO vs XLK: Correlation
Measured on weekly returns over the past three years, Altria (MO) and Technology Select Sector SPDR Fund (XLK) carry a correlation of -0.22, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MO and XLK?
Across a 3-year window, the weekly returns of MO and XLK correlate at -0.22, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.41 versus -0.22 over 3 years. Stretching to 5 years gives -0.04, with an annualized covariance of -116.9 %².
By 3-year correlation, XLK places #38 of the 49 assets tracked against MO. Correlation aside, the last 12 months split them widely, with XLK ahead by 34.6 points (+8.8% versus +43.4%). This link changes with the market regime, having swung between -0.45 and 0.23 on a rolling one-year basis.
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.
MO vs XLK: side by side
| MO (Altria) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +8.8% | +43.4% |
| 5-year return | +100.4% | +145.2% |
| Volatility (ann.) | 21.8% | 24.0% |
| Beta vs S&P 500 | -0.07 | 1.50 |
| Max drawdown (3Y) | -16.4% | -25.7% |
| Market cap | $113.0B | – |
| P/E (trailing) | 14.6 | – |
| Dividend yield | 6.13% | 0.45% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $115.4B |
| Sector / category | Consumer Staples | 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 | MO | XLK |
|---|---|---|
| 2022 | +4.4% | -27.7% |
| 2023 | -3.7% | +56.0% |
| 2024 | +40.8% | +21.6% |
| 2025 | +18.2% | +24.6% |
| 2026 | +21.1% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MO and XLK good diversifiers for each other?
By historical standards, yes. A correlation of -0.22 means the two rarely move for the same reasons.
FAQ
What is the correlation between MO and XLK?
Using weekly returns as of 2026-08-27: -0.22 over 3 years, with -0.41 over the last year and -0.04 over 5 years.
Is XLK a good diversifier for MO?
By historical standards, yes. A correlation of -0.22 means the two rarely move for the same reasons.
What does a correlation of -0.22 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mo-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mo-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MO correlations · XLK correlations
