WDC vs XLK: Correlation
How closely do Western Digital (WDC) and Technology Select Sector SPDR Fund (XLK) trade together? Their weekly returns over three years give a correlation of 0.58, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are WDC and XLK?
On 3 years of weekly data the WDC/XLK correlation comes out at 0.58, moderate. The past 12 months show a weaker link (0.47) than the 3-year average (0.58). The 5-year figure is 0.57, and annualized covariance runs at 813.5 %².
Within WDC's tracked universe of 33 assets, XLK comes in at #16 by 3-year correlation. The last year tells two different stories: WDC led by 430.9 percentage points, +474.3% for WDC against +43.4% for XLK. On a rolling one-year basis the correlation drifted between 0.46 and 0.80, a moderate band. Note the risk asymmetry: WDC runs 2.4 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.
WDC vs XLK: side by side
| WDC (Western Digital) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +474.3% | +43.4% |
| 5-year return | +889.2% | +145.2% |
| Volatility (ann.) | 58.0% | 24.0% |
| Beta vs S&P 500 | 2.15 | 1.50 |
| Max drawdown (3Y) | -49.6% | -25.7% |
| Market cap | $166.6B | – |
| P/E (trailing) | 17.4 | – |
| Dividend yield | 0.11% | 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 | WDC | XLK |
|---|---|---|
| 2022 | -51.6% | -27.7% |
| 2023 | +66.0% | +56.0% |
| 2024 | +13.9% | +21.6% |
| 2025 | +283.7% | +24.6% |
| 2026 | +168.4% | +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 WDC at a 1.08% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are WDC and XLK good diversifiers for each other?
Only partially. A correlation of 0.58 means WDC and XLK share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between WDC and XLK?
The WDC/XLK correlation stands at 0.58 on a 3-year window (1 year: 0.47, 5 years: 0.57), computed from weekly returns as of 2026-08-27.
Is XLK a good diversifier for WDC?
Only partially. A correlation of 0.58 means WDC and XLK share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.58 mean?
A reading of 0.58 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/wdc-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/wdc-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: WDC correlations · XLK correlations
