TYL vs XLK: Correlation
Tyler Technologies (TYL) and Technology Select Sector SPDR Fund (XLK) show a weak relationship: their 3-year correlation of weekly returns is 0.21.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TYL and XLK?
Over the past 3 years, TYL and XLK moved with a correlation of 0.21, which is weak. The past 12 months show a weaker link (-0.03) than the 3-year average (0.21). Over 5 years the correlation is 0.46, and the annualized covariance of weekly returns is 150.3 %².
By 3-year correlation, XLK places #23 of the 33 assets tracked against TYL. Correlation aside, the last 12 months split them widely, with XLK ahead by 77.4 points (-34.0% versus +43.4%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.01 to 0.73.
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.
TYL vs XLK: side by side
| TYL (Tyler Technologies) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -34.0% | +43.4% |
| 5-year return | -22.5% | +145.2% |
| Volatility (ann.) | 29.6% | 24.0% |
| Beta vs S&P 500 | 0.61 | 1.50 |
| Max drawdown (3Y) | -57.4% | -25.7% |
| Market cap | $15.1B | – |
| P/E (trailing) | 46.3 | – |
| Dividend yield | 0.00% | 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 | TYL | XLK |
|---|---|---|
| 2022 | -40.1% | -27.7% |
| 2023 | +29.7% | +56.0% |
| 2024 | +37.9% | +21.6% |
| 2025 | -21.3% | +24.6% |
| 2026 | -18.5% | +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 TYL at a 0.1% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are TYL and XLK good diversifiers for each other?
Reasonably. At 0.21, TYL and XLK keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between TYL and XLK?
Using weekly returns as of 2026-08-27: 0.21 over 3 years, with -0.03 over the last year and 0.46 over 5 years.
Is XLK a good diversifier for TYL?
Reasonably. At 0.21, TYL and XLK keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.21 mean?
A reading of 0.21 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/tyl-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/tyl-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: TYL correlations · XLK correlations
