PPSI vs XLK: Correlation
How closely do Pioneer Power Solutions, Inc. (PPSI) and Technology Select Sector SPDR Fund (XLK) trade together? Their weekly returns over three years give a correlation of 0.46, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PPSI and XLK?
Over the past 3 years, PPSI and XLK moved with a correlation of 0.46, which is moderate. Little has changed lately, as the 1-year reading of 0.48 lands near the 3-year figure. Over 5 years the correlation is 0.26, and the annualized covariance of weekly returns is 752.6 %².
By 3-year correlation, XLK places #4 of the 10 assets tracked against PPSI. Their recent paths diverged sharply: over the last 12 months XLK outperformed by 57.9 percentage points (-14.5% for PPSI against +43.4% for XLK). Risk is not evenly split, since PPSI carries 2.9 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.
PPSI vs XLK: side by side
| PPSI (Pioneer Power Solutions, Inc.) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -14.5% | +43.4% |
| 5-year return | -7.2% | +145.2% |
| Volatility (ann.) | 68.8% | 24.0% |
| Beta vs S&P 500 | 2.08 | 1.50 |
| Max drawdown (3Y) | -62.6% | -25.7% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| 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 | PPSI | XLK |
|---|---|---|
| 2022 | -64.3% | -27.7% |
| 2023 | +153.4% | +56.0% |
| 2024 | -19.4% | +21.6% |
| 2025 | +14.5% | +24.6% |
| 2026 | -37.8% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PPSI and XLK good diversifiers for each other?
Reasonably. At 0.46, PPSI and XLK keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between PPSI and XLK?
The PPSI/XLK correlation stands at 0.46 on a 3-year window (1 year: 0.48, 5 years: 0.26), computed from weekly returns as of 2026-08-27.
Is XLK a good diversifier for PPSI?
Reasonably. At 0.46, PPSI and XLK keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.46 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/ppsi-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ppsi-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: PPSI correlations · XLK correlations
