STX vs XLK: Correlation
Measured on weekly returns over the past three years, Seagate Technology (STX) and Technology Select Sector SPDR Fund (XLK) carry a correlation of 0.57, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are STX and XLK?
On 3 years of weekly data the STX/XLK correlation comes out at 0.57, moderate. The relationship has been stable: the 1-year correlation (0.51) sits close to the 3-year figure. The 5-year figure is 0.59, and annualized covariance runs at 700.3 %².
By 3-year correlation, XLK places #16 of the 37 assets tracked against STX. Their recent paths diverged sharply: over the last 12 months STX outperformed by 367.4 percentage points (+410.8% for STX against +43.4% for XLK). On a rolling one-year basis the correlation drifted between 0.43 and 0.73, a moderate band. Note the risk asymmetry: STX runs 2.1 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
STX vs XLK: side by side
| STX (Seagate Technology) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +410.8% | +43.4% |
| 5-year return | +1032.5% | +145.2% |
| Volatility (ann.) | 51.3% | 24.0% |
| Beta vs S&P 500 | 1.97 | 1.50 |
| Max drawdown (3Y) | -40.0% | -25.7% |
| Market cap | $192.0B | – |
| P/E (trailing) | 61.0 | – |
| Dividend yield | 0.35% | 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 | STX | XLK |
|---|---|---|
| 2022 | -51.4% | -27.7% |
| 2023 | +69.1% | +56.0% |
| 2024 | +4.1% | +21.6% |
| 2025 | +225.3% | +24.6% |
| 2026 | +208.4% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLK holds STX at a 1.27% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are STX and XLK good diversifiers for each other?
To a limited degree. At 0.57 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 STX and XLK?
As of 2026-08-27, the correlation of weekly returns between STX and XLK is 0.57 over 3 years, 0.51 over 1 year and 0.59 over 5 years.
Is XLK a good diversifier for STX?
To a limited degree. At 0.57 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 0.57 mean?
On the −1 to +1 scale, 0.57 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/stx-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/stx-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: STX correlations · XLK correlations
