Technology Select Sector SPDR Fund vs Financial Select Sector SPDR Fund

The price ratio is currently above its 50-day moving average, indicating XLK has been gaining relative ground recently. The ratio is near its 50-day average, suggesting no significant relative extension. The z-score of 0.71 indicates the ratio is within its normal historical range.

Performance is mixed across timeframes, with no clear consistent leader between XLK and XLF. Watch for a breakout in relative momentum.

These two assets have a moderate positive long-term correlation of 0.68. The shorter-term correlation has weakened to 0.38, indicating the assets are diverging from their usual relationship — this can present relative-value opportunities.

XLF has a stronger flow score (38/100 vs 27/100), indicating more consistent accumulation pressure. This is confirmed by Chaikin Money Flow, with XLF showing net inflow (0.06) while XLK shows net outflow (-0.01).

Both assets show similar trend momentum (31/100 vs 31/100), indicating neither has a clear directional edge. XLK carries a better risk profile (67/100 vs 52/100), with lower overall risk metrics. XLK is 1.3x more volatile than XLF on a 21-day basis (27.7% vs 21.0%), which means larger price swings in either direction. XLK has experienced a deeper maximum drawdown over the past year (22.1% vs 15.5%), indicating higher tail risk.

XLK is currently gaining ground against XLF, with the price ratio at 2.69 versus its 50-day average of 2.66. The 200-day z-score of 0.71 is within normal bounds, suggesting XLK may be stretched relative to XLF. On a flow basis, XLF shows stronger capital accumulation (38 vs 27). XLF carries lower short-term volatility (+21.0% vs +27.7% 21-day), with max drawdowns of -22.1% and -15.5% respectively. With a 63-day correlation of 0.38, these assets show moderate co-movement — offering diversification value. Monitor the ratio trend and flow divergence for early signals of a shift in relative leadership.