TSLA vs XLK: Correlation
How closely do Tesla, Inc. (TSLA) and Technology Select Sector SPDR Fund (XLK) trade together? Their weekly returns over three years give a correlation of 0.49, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TSLA and XLK?
Over the past 3 years, TSLA and XLK moved with a correlation of 0.49, which is moderate. Recent behaviour matches the longer record: 0.56 over 1 year against 0.49 over 3. Over 5 years the correlation is 0.53, and the annualized covariance of weekly returns is 634.7 %².
Within TSLA's tracked universe of 31 assets, XLK comes in at #14 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLK outperformed by 41.9 percentage points (+1.5% for TSLA against +43.4% for XLK). The rolling one-year correlation moved between 0.37 and 0.64 over the past three years, a moderate range. Note the risk asymmetry: TSLA 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.
TSLA vs XLK: side by side
| TSLA (Tesla, Inc.) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +1.5% | +43.4% |
| 5-year return | +45.6% | +145.2% |
| Volatility (ann.) | 53.9% | 24.0% |
| Beta vs S&P 500 | 1.87 | 1.50 |
| Max drawdown (3Y) | -53.8% | -25.7% |
| Market cap | $1,401.3B | – |
| P/E (trailing) | 322.6 | – |
| Dividend yield | 0.00% | 0.45% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $115.4B |
| Sector / category | Consumer Discretionary | 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 | TSLA | XLK |
|---|---|---|
| 2022 | -65.0% | -27.7% |
| 2023 | +101.7% | +56.0% |
| 2024 | +62.5% | +21.6% |
| 2025 | +11.4% | +24.6% |
| 2026 | -21.1% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TSLA and XLK good diversifiers for each other?
Reasonably. At 0.49, TSLA and XLK keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between TSLA and XLK?
As of 2026-08-27, the correlation of weekly returns between TSLA and XLK is 0.49 over 3 years, 0.56 over 1 year and 0.53 over 5 years.
Is XLK a good diversifier for TSLA?
Reasonably. At 0.49, TSLA and XLK keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.49 mean?
A reading of 0.49 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/tsla-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/tsla-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: TSLA correlations · XLK correlations
