MU vs XLK: Correlation
How closely do Micron Technology (MU) 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 MU and XLK?
Across a 3-year window, the weekly returns of MU and XLK correlate at 0.68, strong. Recent behaviour matches the longer record: 0.66 over 1 year against 0.68 over 3. Stretching to 5 years gives 0.64, with an annualized covariance of 1038.1 %².
Within MU's tracked universe of 32 assets, XLK comes in at #5 by 3-year correlation. Correlation aside, the last 12 months split them widely, with MU ahead by 652.3 points (+695.7% versus +43.4%). The rolling one-year correlation moved between 0.48 and 0.79 over the past three years, a moderate range. One caveat on sizing: MU is 2.6 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.
MU vs XLK: side by side
| MU (Micron Technology) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +695.7% | +43.4% |
| 5-year return | +1211.2% | +145.2% |
| Volatility (ann.) | 63.3% | 24.0% |
| Beta vs S&P 500 | 2.47 | 1.50 |
| Max drawdown (3Y) | -57.6% | -25.7% |
| Market cap | – | – |
| P/E (trailing) | 21.2 | – |
| Dividend yield | 0.06% | 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 | MU | XLK |
|---|---|---|
| 2022 | -45.9% | -27.7% |
| 2023 | +71.9% | +56.0% |
| 2024 | -1.0% | +21.6% |
| 2025 | +240.2% | +24.6% |
| 2026 | +227.9% | +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 MU at a 3.99% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are MU and XLK good diversifiers for each other?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between MU and XLK?
Using weekly returns as of 2026-08-27: 0.68 over 3 years, with 0.66 over the last year and 0.64 over 5 years.
Is XLK a good diversifier for MU?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.68 mean?
On the −1 to +1 scale, 0.68 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/mu-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mu-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: MU correlations · XLK correlations
