TWN vs XLK: Correlation
How closely do Taiwan Fund, Inc. (The) (TWN) and Technology Select Sector SPDR Fund (XLK) trade together? Their weekly returns over three years give a correlation of 0.69, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TWN and XLK?
Across a 3-year window, the weekly returns of TWN and XLK correlate at 0.69, strong. The relationship has been stable: the 1-year correlation (0.61) sits close to the 3-year figure. Stretching to 5 years gives 0.63, with an annualized covariance of 479.0 %².
Among the 13 assets we track against TWN, XLK ranks #4 by 3-year correlation. The last year tells two different stories: TWN led by 84.4 percentage points, +127.8% for TWN against +43.4% for XLK.
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.
TWN vs XLK: side by side
| TWN (Taiwan Fund, Inc. (The)) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +127.8% | +43.4% |
| 5-year return | +320.4% | +145.2% |
| Volatility (ann.) | 28.9% | 24.0% |
| Beta vs S&P 500 | 1.26 | 1.50 |
| Max drawdown (3Y) | -30.0% | -25.7% |
| Market cap | $0.6B | – |
| P/E (trailing) | 2.6 | – |
| Dividend yield | 6.18% | 0.45% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $115.4B |
| Sector / category | US Listed | 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 | TWN | XLK |
|---|---|---|
| 2022 | -38.5% | -27.7% |
| 2023 | +51.7% | +56.0% |
| 2024 | +32.8% | +21.6% |
| 2025 | +54.1% | +24.6% |
| 2026 | +92.1% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TWN and XLK good diversifiers for each other?
Somewhat, no more. With 0.69 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between TWN and XLK?
As of 2026-08-27, the correlation of weekly returns between TWN and XLK is 0.69 over 3 years, 0.61 over 1 year and 0.63 over 5 years.
Is XLK a good diversifier for TWN?
Somewhat, no more. With 0.69 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.69 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/twn-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/twn-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: TWN correlations · XLK correlations
