TEL vs XLK: Correlation
Measured on weekly returns over the past three years, TE Connectivity (TEL) and Technology Select Sector SPDR Fund (XLK) carry a correlation of 0.58, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TEL and XLK?
Over the past 3 years, TEL and XLK moved with a correlation of 0.58, which is moderate. The past 12 months show a weaker link (0.45) than the 3-year average (0.58). Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 403.2 %².
Within TEL's tracked universe of 36 assets, XLK comes in at #17 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLK ahead by 44.5 points (-1.1% versus +43.4%). The rolling one-year correlation moved between 0.33 and 0.83 over the past three years, a moderate range.
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.
TEL vs XLK: side by side
| TEL (TE Connectivity) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -1.1% | +43.4% |
| 5-year return | +43.7% | +145.2% |
| Volatility (ann.) | 28.8% | 24.0% |
| Beta vs S&P 500 | 1.32 | 1.50 |
| Max drawdown (3Y) | -22.6% | -25.7% |
| Market cap | $58.8B | – |
| P/E (trailing) | 20.1 | – |
| Dividend yield | 1.42% | 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 | TEL | XLK |
|---|---|---|
| 2022 | -27.7% | -27.7% |
| 2023 | +24.6% | +56.0% |
| 2024 | +3.5% | +21.6% |
| 2025 | +61.1% | +24.6% |
| 2026 | -9.8% | +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 TEL at a 0.4% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are TEL and XLK good diversifiers for each other?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between TEL and XLK?
Using weekly returns as of 2026-08-27: 0.58 over 3 years, with 0.45 over the last year and 0.65 over 5 years.
Is XLK a good diversifier for TEL?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.58 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/tel-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/tel-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: TEL correlations · XLK correlations
