MSI vs XLK: Correlation
Measured on weekly returns over the past three years, Motorola Solutions (MSI) and Technology Select Sector SPDR Fund (XLK) carry a correlation of 0.26, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MSI and XLK?
Over the past 3 years, MSI and XLK moved with a correlation of 0.26, which is weak. Lately the two have drifted apart, with the 1-year correlation at -0.11 versus 0.26 over 3 years. Over 5 years the correlation is 0.40, and the annualized covariance of weekly returns is 136.4 %².
Within MSI's tracked universe of 32 assets, XLK comes in at #22 by 3-year correlation. The last year tells two different stories: XLK led by 37.5 percentage points, +5.9% for MSI against +43.4% for XLK. The relationship is regime-dependent: the rolling one-year correlation swung between -0.21 and 0.60 over the past three years, so this pair behaves very differently depending on the market environment.
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.
MSI vs XLK: side by side
| MSI (Motorola Solutions) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +5.9% | +43.4% |
| 5-year return | +111.1% | +145.2% |
| Volatility (ann.) | 22.1% | 24.0% |
| Beta vs S&P 500 | 0.61 | 1.50 |
| Max drawdown (3Y) | -27.0% | -25.7% |
| Market cap | $80.5B | – |
| P/E (trailing) | 38.5 | – |
| Dividend yield | 0.97% | 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 | MSI | XLK |
|---|---|---|
| 2022 | -3.8% | -27.7% |
| 2023 | +23.0% | +56.0% |
| 2024 | +49.1% | +21.6% |
| 2025 | -16.2% | +24.6% |
| 2026 | +27.6% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
MSI represents 0.54% of XLK's portfolio, so part of any move in XLK is MSI itself, and the correlation between them is partly mechanical.
Are MSI and XLK good diversifiers for each other?
Reasonably. At 0.26, MSI and XLK keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between MSI and XLK?
The MSI/XLK correlation stands at 0.26 on a 3-year window (1 year: -0.11, 5 years: 0.40), computed from weekly returns as of 2026-08-27.
Is XLK a good diversifier for MSI?
Reasonably. At 0.26, MSI and XLK keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.26 mean?
On the −1 to +1 scale, 0.26 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/msi-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/msi-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MSI correlations · XLK correlations
