TXN vs XLK: Correlation
Texas Instruments (TXN) and Technology Select Sector SPDR Fund (XLK) show a moderate relationship: their 3-year correlation of weekly returns is 0.54.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TXN and XLK?
On 3 years of weekly data the TXN/XLK correlation comes out at 0.54, moderate. The relationship has been stable: the 1-year correlation (0.50) sits close to the 3-year figure. The 5-year figure is 0.60, and annualized covariance runs at 440.8 %².
By 3-year correlation, XLK places #20 of the 31 assets tracked against TXN. The trailing year gives XLK the advantage: +33.1% versus +43.4%, a 10.3-point spread. On a rolling one-year basis the correlation drifted between 0.34 and 0.79, a moderate band.
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.
TXN vs XLK: side by side
| TXN (Texas Instruments) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +33.1% | +43.4% |
| 5-year return | +60.4% | +145.2% |
| Volatility (ann.) | 34.3% | 24.0% |
| Beta vs S&P 500 | 1.28 | 1.50 |
| Max drawdown (3Y) | -33.4% | -25.7% |
| Market cap | $243.4B | – |
| P/E (trailing) | 40.6 | – |
| Dividend yield | 2.15% | 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 | TXN | XLK |
|---|---|---|
| 2022 | -9.9% | -27.7% |
| 2023 | +6.4% | +56.0% |
| 2024 | +13.1% | +21.6% |
| 2025 | -4.5% | +24.6% |
| 2026 | +56.2% | +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 TXN at a 1.59% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are TXN and XLK good diversifiers for each other?
To a limited degree. At 0.54 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between TXN and XLK?
The TXN/XLK correlation stands at 0.54 on a 3-year window (1 year: 0.50, 5 years: 0.60), computed from weekly returns as of 2026-08-27.
Is XLK a good diversifier for TXN?
To a limited degree. At 0.54 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.54 mean?
On the −1 to +1 scale, 0.54 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/txn-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/txn-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: TXN correlations · XLK correlations
