MPWR vs XLK: Correlation
How closely do Monolithic Power Systems (MPWR) and Technology Select Sector SPDR Fund (XLK) trade together? Their weekly returns over three years give a correlation of 0.68, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MPWR and XLK?
On 3 years of weekly data the MPWR/XLK correlation comes out at 0.68, strong. The link has loosened recently: the 1-year correlation (0.50) runs below the 3-year figure (0.68). The 5-year figure is 0.68, and annualized covariance runs at 782.0 %².
By 3-year correlation, XLK places #7 of the 41 assets tracked against MPWR. Over the last 12 months MPWR came out ahead by 9.0 percentage points (+52.4% against +43.4%). Across three years, the rolling one-year figure varied moderately, from 0.46 to 0.80. Risk is not evenly split, since MPWR carries 2.0 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.
MPWR vs XLK: side by side
| MPWR (Monolithic Power Systems) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +52.4% | +43.4% |
| 5-year return | +170.3% | +145.2% |
| Volatility (ann.) | 48.1% | 24.0% |
| Beta vs S&P 500 | 2.22 | 1.50 |
| Max drawdown (3Y) | -51.6% | -25.7% |
| Market cap | $64.4B | – |
| P/E (trailing) | 79.4 | – |
| Dividend yield | 0.55% | 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 | MPWR | XLK |
|---|---|---|
| 2022 | -27.8% | -27.7% |
| 2023 | +79.8% | +56.0% |
| 2024 | -5.6% | +21.6% |
| 2025 | +54.5% | +24.6% |
| 2026 | +45.2% | +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 MPWR at a 0.43% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are MPWR and XLK good diversifiers for each other?
Only partially. A correlation of 0.68 means MPWR 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 MPWR and XLK?
Using weekly returns as of 2026-08-27: 0.68 over 3 years, with 0.50 over the last year and 0.68 over 5 years.
Is XLK a good diversifier for MPWR?
Only partially. A correlation of 0.68 means MPWR 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 0.68 mean?
A reading of 0.68 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/mpwr-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mpwr-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MPWR correlations · XLK correlations
