ORCL vs XLK: Correlation
How closely do Oracle Corporation (ORCL) and Technology Select Sector SPDR Fund (XLK) trade together? Their weekly returns over three years give a correlation of 0.59, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ORCL and XLK?
Over the past 3 years, ORCL and XLK moved with a correlation of 0.59, which is moderate. Little has changed lately, as the 1-year reading of 0.62 lands near the 3-year figure. Over 5 years the correlation is 0.58, and the annualized covariance of weekly returns is 709.0 %².
In ORCL's tracked universe of 30 assets, XLK sits right near the top at #2. Their recent paths diverged sharply: over the last 12 months XLK outperformed by 78.2 percentage points (-34.8% for ORCL against +43.4% for XLK). The rolling one-year correlation moved between 0.49 and 0.76 over the past three years, a moderate range. Note the risk asymmetry: ORCL runs 2.1 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
ORCL vs XLK: side by side
| ORCL (Oracle Corporation) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -34.8% | +43.4% |
| 5-year return | +81.7% | +145.2% |
| Volatility (ann.) | 49.9% | 24.0% |
| Beta vs S&P 500 | 1.71 | 1.50 |
| Max drawdown (3Y) | -64.6% | -25.7% |
| Market cap | $437.7B | – |
| P/E (trailing) | 25.5 | – |
| Dividend yield | 1.34% | 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 | ORCL | XLK |
|---|---|---|
| 2022 | -4.6% | -27.7% |
| 2023 | +30.9% | +56.0% |
| 2024 | +60.0% | +21.6% |
| 2025 | +18.1% | +24.6% |
| 2026 | -21.3% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 1.69% of XLK is ORCL itself, so the fund partly moves with the stock by construction.
Are ORCL and XLK good diversifiers for each other?
Only partially. A correlation of 0.59 means ORCL 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 ORCL and XLK?
The ORCL/XLK correlation stands at 0.59 on a 3-year window (1 year: 0.62, 5 years: 0.58), computed from weekly returns as of 2026-08-27.
Is XLK a good diversifier for ORCL?
Only partially. A correlation of 0.59 means ORCL 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 0.59 mean?
On the −1 to +1 scale, 0.59 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/orcl-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/orcl-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ORCL correlations · XLK correlations
