PENG vs XLK: Correlation
How closely do Penguin Solutions, Inc. (PENG) and Technology Select Sector SPDR Fund (XLK) trade together? Their weekly returns over three years give a correlation of 0.60, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PENG and XLK?
On 3 years of weekly data the PENG/XLK correlation comes out at 0.60, strong. Little has changed lately, as the 1-year reading of 0.70 lands near the 3-year figure. The 5-year figure is 0.60, and annualized covariance runs at 1022.8 %².
In PENG's tracked universe of 10 assets, XLK sits right near the top at #3. The last year tells two different stories: PENG led by 72.8 percentage points, +116.2% for PENG against +43.4% for XLK. One caveat on sizing: PENG is 3.0 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.
PENG vs XLK: side by side
| PENG (Penguin Solutions, Inc.) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +116.2% | +43.4% |
| 5-year return | +118.5% | +145.2% |
| Volatility (ann.) | 71.5% | 24.0% |
| Beta vs S&P 500 | 2.57 | 1.50 |
| Max drawdown (3Y) | -50.5% | -25.7% |
| Market cap | $2.7B | – |
| P/E (trailing) | 37.2 | – |
| Dividend yield | 0.00% | 0.45% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $115.4B |
| Sector / category | US Listed | 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 | PENG | XLK |
|---|---|---|
| 2022 | -58.1% | -27.7% |
| 2023 | +27.2% | +56.0% |
| 2024 | +1.4% | +21.6% |
| 2025 | +1.9% | +24.6% |
| 2026 | +168.1% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PENG and XLK good diversifiers for each other?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between PENG and XLK?
Using weekly returns as of 2026-08-27: 0.60 over 3 years, with 0.70 over the last year and 0.60 over 5 years.
Is XLK a good diversifier for PENG?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.60 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/peng-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/peng-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: PENG correlations · XLK correlations
