XLK vs ZBRA: Correlation
How closely do Technology Select Sector SPDR Fund (XLK) and Zebra Technologies (ZBRA) trade together? Their weekly returns over three years give a correlation of 0.44, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are XLK and ZBRA?
On 3 years of weekly data the XLK/ZBRA correlation comes out at 0.44, moderate. The link has loosened recently: the 1-year correlation (0.29) runs below the 3-year figure (0.44). The 5-year figure is 0.57, and annualized covariance runs at 426.5 %².
Within XLK's tracked universe of 147 assets, ZBRA comes in at #103 by 3-year correlation. The last year tells two different stories: XLK led by 31.1 percentage points, +43.4% for XLK against +12.3% for ZBRA. The relationship is regime-dependent: the rolling one-year correlation swung between 0.16 and 0.73 over the past three years, so this pair behaves very differently depending on the market environment. One caveat on sizing: ZBRA 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.
XLK vs ZBRA: side by side
| XLK (Technology Select Sector SPDR Fund) | ZBRA (Zebra Technologies) | |
|---|---|---|
| 1-year return | +43.4% | +12.3% |
| 5-year return | +145.2% | -38.2% |
| Volatility (ann.) | 24.0% | 40.8% |
| Beta vs S&P 500 | 1.50 | 1.54 |
| Max drawdown (3Y) | -25.7% | -52.7% |
| Market cap | – | $17.1B |
| P/E (trailing) | – | 33.0 |
| Dividend yield | 0.45% | 0.00% |
| Expense ratio | 0.08% | – |
| Assets under management | $115.4B | – |
| Sector / category | Sector ETF | Information Technology |
XLK, State Street Investment Management's Technology fund, carries $115.4B under management, 73 holdings, a 0.08% expense ratio, a 0.45% trailing dividend yield.
Year-by-year returns
| Year | XLK | ZBRA |
|---|---|---|
| 2022 | -27.7% | -56.9% |
| 2023 | +56.0% | +6.6% |
| 2024 | +21.6% | +41.3% |
| 2025 | +24.6% | -37.1% |
| 2026 | +31.3% | +48.7% |
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 ZBRA at a 0.11% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are XLK and ZBRA good diversifiers for each other?
A fair diversifier. At 0.44, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between XLK and ZBRA?
As of 2026-08-27, the correlation of weekly returns between XLK and ZBRA is 0.44 over 3 years, 0.29 over 1 year and 0.57 over 5 years.
Is ZBRA a good diversifier for XLK?
A fair diversifier. At 0.44, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.44 mean?
On the −1 to +1 scale, 0.44 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/xlk-vs-zbra.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/xlk-vs-zbra/)
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Related comparisons
Hubs: XLK correlations · ZBRA correlations
