SNPS vs XLK: Correlation
Measured on weekly returns over the past three years, Synopsys (SNPS) and Technology Select Sector SPDR Fund (XLK) carry a correlation of 0.59, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SNPS and XLK?
Over the past 3 years, SNPS and XLK moved with a correlation of 0.59, which is moderate. The past 12 months show a weaker link (0.44) than the 3-year average (0.59). Over 5 years the correlation is 0.66, and the annualized covariance of weekly returns is 601.3 %².
Among the 33 assets we track against SNPS, XLK ranks #4 by 3-year correlation. The last year tells two different stories: XLK led by 66.3 percentage points, -22.9% for SNPS against +43.4% for XLK. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.35 to 0.85. One caveat on sizing: SNPS is 1.8 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.
SNPS vs XLK: side by side
| SNPS (Synopsys) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -22.9% | +43.4% |
| 5-year return | +39.1% | +145.2% |
| Volatility (ann.) | 42.2% | 24.0% |
| Beta vs S&P 500 | 1.57 | 1.50 |
| Max drawdown (3Y) | -42.3% | -25.7% |
| Market cap | $89.1B | – |
| P/E (trailing) | 71.4 | – |
| 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 | SNPS | XLK |
|---|---|---|
| 2022 | -13.4% | -27.7% |
| 2023 | +61.3% | +56.0% |
| 2024 | -5.7% | +21.6% |
| 2025 | -3.2% | +24.6% |
| 2026 | -1.0% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.53% of XLK is SNPS itself, so the fund partly moves with the stock by construction.
Are SNPS and XLK good diversifiers for each other?
To a limited degree. At 0.59 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between SNPS and XLK?
Using weekly returns as of 2026-08-27: 0.59 over 3 years, with 0.44 over the last year and 0.66 over 5 years.
Is XLK a good diversifier for SNPS?
To a limited degree. At 0.59 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.59 mean?
A reading of 0.59 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/snps-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/snps-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SNPS correlations · XLK correlations
