NVDA vs XLK: Correlation
Nvidia (NVDA) and Technology Select Sector SPDR Fund (XLK) show a strong relationship: their 3-year correlation of weekly returns is 0.79.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NVDA and XLK?
Across a 3-year window, the weekly returns of NVDA and XLK correlate at 0.79, strong. The relationship has been stable: the 1-year correlation (0.72) sits close to the 3-year figure. Stretching to 5 years gives 0.80, with an annualized covariance of 843.0 %².
Few assets follow NVDA as closely as XLK, which ranks #3 of 37 tracked partners. The last year tells two different stories: XLK led by 17.7 percentage points, +25.7% for NVDA against +43.4% for XLK. The link looks structural: the rolling one-year correlation barely moved, holding between 0.65 and 0.88. Risk is not evenly split, since NVDA carries 1.9 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.
NVDA vs XLK: side by side
| NVDA (Nvidia) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +25.7% | +43.4% |
| 5-year return | +908.3% | +145.2% |
| Volatility (ann.) | 44.5% | 24.0% |
| Beta vs S&P 500 | 2.18 | 1.50 |
| Max drawdown (3Y) | -36.9% | -25.7% |
| Market cap | $5,505.0B | – |
| P/E (trailing) | 32.2 | – |
| Dividend yield | 0.00% | 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 | NVDA | XLK |
|---|---|---|
| 2022 | -50.3% | -27.7% |
| 2023 | +239.0% | +56.0% |
| 2024 | +171.2% | +21.6% |
| 2025 | +38.9% | +24.6% |
| 2026 | +22.4% | +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 NVDA at a 13.91% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are NVDA and XLK good diversifiers for each other?
To a limited degree. At 0.79 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between NVDA and XLK?
Using weekly returns as of 2026-08-27: 0.79 over 3 years, with 0.72 over the last year and 0.80 over 5 years.
Is XLK a good diversifier for NVDA?
To a limited degree. At 0.79 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.79 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/nvda-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/nvda-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: NVDA correlations · XLK correlations
