TDY vs XLK: Correlation
How closely do Teledyne Technologies (TDY) and Technology Select Sector SPDR Fund (XLK) trade together? Their weekly returns over three years give a correlation of 0.36, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TDY and XLK?
Over the past 3 years, TDY and XLK moved with a correlation of 0.36, which is moderate. The past 12 months show a weaker link (0.22) than the 3-year average (0.36). Over 5 years the correlation is 0.47, and the annualized covariance of weekly returns is 191.6 %².
By 3-year correlation, XLK places #24 of the 35 assets tracked against TDY. Their recent paths diverged sharply: over the last 12 months XLK outperformed by 27.7 percentage points (+15.7% for TDY against +43.4% for XLK). Across three years, the rolling one-year figure varied moderately, from 0.15 to 0.60.
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.
TDY vs XLK: side by side
| TDY (Teledyne Technologies) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +15.7% | +43.4% |
| 5-year return | +36.5% | +145.2% |
| Volatility (ann.) | 22.0% | 24.0% |
| Beta vs S&P 500 | 0.76 | 1.50 |
| Max drawdown (3Y) | -18.8% | -25.7% |
| Market cap | $29.0B | – |
| P/E (trailing) | 30.7 | – |
| 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 | TDY | XLK |
|---|---|---|
| 2022 | -8.5% | -27.7% |
| 2023 | +11.6% | +56.0% |
| 2024 | +4.0% | +21.6% |
| 2025 | +10.0% | +24.6% |
| 2026 | +22.7% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
TDY represents 0.2% of XLK's portfolio, so part of any move in XLK is TDY itself, and the correlation between them is partly mechanical.
Are TDY and XLK good diversifiers for each other?
A fair diversifier. At 0.36, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between TDY and XLK?
As of 2026-08-27, the correlation of weekly returns between TDY and XLK is 0.36 over 3 years, 0.22 over 1 year and 0.47 over 5 years.
Is XLK a good diversifier for TDY?
A fair diversifier. At 0.36, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.36 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/tdy-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/tdy-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: TDY correlations · XLK correlations
