ON vs XLK: Correlation
Measured on weekly returns over the past three years, ON Semiconductor (ON) and Technology Select Sector SPDR Fund (XLK) carry a correlation of 0.53, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ON and XLK?
Over the past 3 years, ON and XLK moved with a correlation of 0.53, which is moderate. The relationship has been stable: the 1-year correlation (0.55) sits close to the 3-year figure. Over 5 years the correlation is 0.60, and the annualized covariance of weekly returns is 623.8 %².
By 3-year correlation, XLK places #17 of the 29 assets tracked against ON. Their 12-month results are close: +46.0% for ON against +43.4% for XLK. The rolling one-year correlation moved between 0.28 and 0.76 over the past three years, a moderate range. Risk is not evenly split, since ON carries 2.1 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.
ON vs XLK: side by side
| ON (ON Semiconductor) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +46.0% | +43.4% |
| 5-year return | +65.2% | +145.2% |
| Volatility (ann.) | 49.2% | 24.0% |
| Beta vs S&P 500 | 1.61 | 1.50 |
| Max drawdown (3Y) | -67.9% | -25.7% |
| Market cap | $29.1B | – |
| P/E (trailing) | 47.9 | – |
| 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 | ON | XLK |
|---|---|---|
| 2022 | -8.2% | -27.7% |
| 2023 | +33.9% | +56.0% |
| 2024 | -24.5% | +21.6% |
| 2025 | -14.1% | +24.6% |
| 2026 | +38.1% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
ON represents 0.19% of XLK's portfolio, so part of any move in XLK is ON itself, and the correlation between them is partly mechanical.
Are ON and XLK good diversifiers for each other?
Only partially. A correlation of 0.53 means ON 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 ON and XLK?
Using weekly returns as of 2026-08-27: 0.53 over 3 years, with 0.55 over the last year and 0.60 over 5 years.
Is XLK a good diversifier for ON?
Only partially. A correlation of 0.53 means ON 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 0.53 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/on-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/on-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ON correlations · XLK correlations
