TKO vs XLC: Correlation
TKO Group Holdings (TKO) and Communication Services Select Sector SPDR Fund (XLC) show a moderate relationship: their 3-year correlation of weekly returns is 0.37.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TKO and XLC?
Over the past 3 years, TKO and XLC moved with a correlation of 0.37, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.14 versus 0.37 over 3 years. Over 5 years the correlation is 0.35, and the annualized covariance of weekly returns is 189.5 %².
Among the 32 assets we track against TKO, XLC ranks #16 by 3-year correlation. Neither side won the trailing year by much: +0.8% against +1.5%. The relationship is regime-dependent: the rolling one-year correlation swung between 0.17 and 0.67 over the past three years, so this pair behaves very differently depending on the market environment. One caveat on sizing: TKO is 2.0 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.
TKO vs XLC: side by side
| TKO (TKO Group Holdings) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +0.8% | +1.5% |
| 5-year return | +281.8% | +37.5% |
| Volatility (ann.) | 32.1% | 16.0% |
| Beta vs S&P 500 | 0.70 | 0.90 |
| Max drawdown (3Y) | -34.8% | -18.0% |
| Market cap | $34.9B | – |
| P/E (trailing) | 65.8 | – |
| Dividend yield | 1.66% | 1.32% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $21.7B |
| Sector / category | Communication Services | Sector ETF |
On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Year-by-year returns
| Year | TKO | XLC |
|---|---|---|
| 2022 | +39.9% | -37.6% |
| 2023 | +23.9% | +52.8% |
| 2024 | +74.2% | +34.7% |
| 2025 | +48.9% | +23.1% |
| 2026 | -11.1% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLC holds TKO at a 2.13% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are TKO and XLC good diversifiers for each other?
Reasonably. At 0.37, TKO and XLC keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between TKO and XLC?
Using weekly returns as of 2026-08-27: 0.37 over 3 years, with 0.14 over the last year and 0.35 over 5 years.
Is XLC a good diversifier for TKO?
Reasonably. At 0.37, TKO and XLC keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.37 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/tko-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/tko-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: TKO correlations · XLC correlations
