ROP vs XLK: Correlation
Measured on weekly returns over the past three years, Roper Technologies (ROP) and Technology Select Sector SPDR Fund (XLK) carry a correlation of 0.24, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ROP and XLK?
Across a 3-year window, the weekly returns of ROP and XLK correlate at 0.24, weak. The past 12 months show a weaker link (-0.03) than the 3-year average (0.24). Stretching to 5 years gives 0.46, with an annualized covariance of 118.9 %².
Within ROP's tracked universe of 47 assets, XLK comes in at #37 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLK ahead by 62.7 points (-19.3% versus +43.4%). This link changes with the market regime, having swung between -0.02 and 0.65 on a rolling one-year basis.
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.
ROP vs XLK: side by side
| ROP (Roper Technologies) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -19.3% | +43.4% |
| 5-year return | -9.6% | +145.2% |
| Volatility (ann.) | 20.5% | 24.0% |
| Beta vs S&P 500 | 0.55 | 1.50 |
| Max drawdown (3Y) | -46.5% | -25.7% |
| Market cap | $41.8B | – |
| P/E (trailing) | 17.6 | – |
| Dividend yield | 0.86% | 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 | ROP | XLK |
|---|---|---|
| 2022 | -11.6% | -27.7% |
| 2023 | +26.9% | +56.0% |
| 2024 | -4.1% | +21.6% |
| 2025 | -13.8% | +24.6% |
| 2026 | -4.4% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.28% of XLK is ROP itself, so the fund partly moves with the stock by construction.
Are ROP and XLK good diversifiers for each other?
Reasonably. At 0.24, ROP and XLK keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between ROP and XLK?
As of 2026-08-27, the correlation of weekly returns between ROP and XLK is 0.24 over 3 years, -0.03 over 1 year and 0.46 over 5 years.
Is XLK a good diversifier for ROP?
Reasonably. At 0.24, ROP and XLK keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.24 mean?
On the −1 to +1 scale, 0.24 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/rop-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/rop-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ROP correlations · XLK correlations
