WDAY vs XLK: Correlation
Workday, Inc. (WDAY) and Technology Select Sector SPDR Fund (XLK) show a moderate relationship: their 3-year correlation of weekly returns is 0.34.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are WDAY and XLK?
Across a 3-year window, the weekly returns of WDAY and XLK correlate at 0.34, moderate. The past 12 months show a weaker link (0.17) than the 3-year average (0.34). Stretching to 5 years gives 0.50, with an annualized covariance of 327.9 %².
By 3-year correlation, XLK places #36 of the 46 assets tracked against WDAY. The last year tells two different stories: XLK led by 59.1 percentage points, -15.7% for WDAY against +43.4% for XLK. The relationship is regime-dependent: the rolling one-year correlation swung between 0.18 and 0.79 over the past three years, so this pair behaves very differently depending on the market environment. One caveat on sizing: WDAY is 1.7 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.
WDAY vs XLK: side by side
| WDAY (Workday, Inc.) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -15.7% | +43.4% |
| 5-year return | -28.7% | +145.2% |
| Volatility (ann.) | 40.0% | 24.0% |
| Beta vs S&P 500 | 1.09 | 1.50 |
| Max drawdown (3Y) | -63.4% | -25.7% |
| Market cap | $47.8B | – |
| P/E (trailing) | 59.6 | – |
| 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 | WDAY | XLK |
|---|---|---|
| 2022 | -38.7% | -27.7% |
| 2023 | +65.0% | +56.0% |
| 2024 | -6.5% | +21.6% |
| 2025 | -16.8% | +24.6% |
| 2026 | -9.9% | +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 WDAY at a 0.26% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are WDAY and XLK good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.34 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between WDAY and XLK?
Using weekly returns as of 2026-08-27: 0.34 over 3 years, with 0.17 over the last year and 0.50 over 5 years.
Is XLK a good diversifier for WDAY?
Yes, to a useful degree: a correlation of 0.34 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.34 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/wday-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/wday-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: WDAY correlations · XLK correlations
