TER vs XLK: Correlation
How closely do Teradyne (TER) and Technology Select Sector SPDR Fund (XLK) trade together? Their weekly returns over three years give a correlation of 0.52, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TER and XLK?
On 3 years of weekly data the TER/XLK correlation comes out at 0.52, moderate. The link has loosened recently: the 1-year correlation (0.37) runs below the 3-year figure (0.52). The 5-year figure is 0.59, and annualized covariance runs at 658.9 %².
Among the 34 assets we track against TER, XLK ranks #16 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months TER outperformed by 175.4 percentage points (+218.8% for TER against +43.4% for XLK). The relationship is regime-dependent: the rolling one-year correlation swung between 0.28 and 0.81 over the past three years, so this pair behaves very differently depending on the market environment. Note the risk asymmetry: TER runs 2.2 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.
TER vs XLK: side by side
| TER (Teradyne) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +218.8% | +43.4% |
| 5-year return | +207.9% | +145.2% |
| Volatility (ann.) | 52.5% | 24.0% |
| Beta vs S&P 500 | 1.70 | 1.50 |
| Max drawdown (3Y) | -58.2% | -25.7% |
| Market cap | $58.2B | – |
| P/E (trailing) | 50.0 | – |
| Dividend yield | 0.14% | 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 | TER | XLK |
|---|---|---|
| 2022 | -46.3% | -27.7% |
| 2023 | +24.8% | +56.0% |
| 2024 | +16.5% | +21.6% |
| 2025 | +54.4% | +24.6% |
| 2026 | +92.4% | +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 TER at a 0.38% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are TER and XLK good diversifiers for each other?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between TER and XLK?
Using weekly returns as of 2026-08-27: 0.52 over 3 years, with 0.37 over the last year and 0.59 over 5 years.
Is XLK a good diversifier for TER?
Somewhat, no more. With 0.52 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.52 mean?
On the −1 to +1 scale, 0.52 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/ter-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ter-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: TER correlations · XLK correlations
