PLTR vs XLK: Correlation
Palantir Technologies (PLTR) and Technology Select Sector SPDR Fund (XLK) show a moderate relationship: their 3-year correlation of weekly returns is 0.52.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PLTR and XLK?
Across a 3-year window, the weekly returns of PLTR and XLK correlate at 0.52, moderate. Little has changed lately, as the 1-year reading of 0.50 lands near the 3-year figure. Stretching to 5 years gives 0.54, with an annualized covariance of 897.6 %².
Among the 36 assets we track against PLTR, XLK ranks #15 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLK ahead by 24.8 points (+18.6% versus +43.4%). The rolling one-year correlation moved between 0.41 and 0.73 over the past three years, a moderate range. One caveat on sizing: PLTR 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.
PLTR vs XLK: side by side
| PLTR (Palantir Technologies) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +18.6% | +43.4% |
| 5-year return | +621.8% | +145.2% |
| Volatility (ann.) | 71.3% | 24.0% |
| Beta vs S&P 500 | 2.47 | 1.50 |
| Max drawdown (3Y) | -48.2% | -25.7% |
| Market cap | $446.8B | – |
| P/E (trailing) | 151.2 | – |
| 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 | PLTR | XLK |
|---|---|---|
| 2022 | -64.7% | -27.7% |
| 2023 | +167.4% | +56.0% |
| 2024 | +340.5% | +21.6% |
| 2025 | +135.0% | +24.6% |
| 2026 | +4.6% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 2.73% of XLK is PLTR itself, so the fund partly moves with the stock by construction.
Are PLTR and XLK good diversifiers for each other?
Only partially. A correlation of 0.52 means PLTR 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 PLTR and XLK?
As of 2026-08-27, the correlation of weekly returns between PLTR and XLK is 0.52 over 3 years, 0.50 over 1 year and 0.54 over 5 years.
Is XLK a good diversifier for PLTR?
Only partially. A correlation of 0.52 means PLTR 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 0.52 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/pltr-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/pltr-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: PLTR correlations · XLK correlations
