BAX vs XLV: Correlation
Baxter International (BAX) and Health Care Select Sector SPDR Fund (XLV) show a moderate relationship: their 3-year correlation of weekly returns is 0.51.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BAX and XLV?
Over the past 3 years, BAX and XLV moved with a correlation of 0.51, which is moderate. The relationship has been stable: the 1-year correlation (0.52) sits close to the 3-year figure. Over 5 years the correlation is 0.50, and the annualized covariance of weekly returns is 290.4 %².
Among the 43 assets we track against BAX, XLV ranks #17 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLV outperformed by 20.9 percentage points (+6.6% for BAX against +27.5% for XLV). On a rolling one-year basis the correlation drifted between 0.27 and 0.64, a moderate band. Note the risk asymmetry: BAX runs 2.6 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.
BAX vs XLV: side by side
| BAX (Baxter International) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +6.6% | +27.5% |
| 5-year return | -62.2% | +37.4% |
| Volatility (ann.) | 38.4% | 14.7% |
| Beta vs S&P 500 | 0.89 | 0.42 |
| Max drawdown (3Y) | -62.4% | -17.1% |
| Market cap | $13.4B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.75% | 1.56% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $41.7B |
| Sector / category | Health Care | Sector ETF |
On the fund side, XLV sits in the Health category at State Street Investment Management, with $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Year-by-year returns
| Year | BAX | XLV |
|---|---|---|
| 2022 | -39.6% | -2.1% |
| 2023 | -21.9% | +2.1% |
| 2024 | -22.4% | +2.5% |
| 2025 | -33.3% | +14.5% |
| 2026 | +35.8% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.22% of XLV is BAX itself, so the fund partly moves with the stock by construction.
Are BAX and XLV good diversifiers for each other?
Only partially. A correlation of 0.51 means BAX and XLV 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 BAX and XLV?
As of 2026-08-27, the correlation of weekly returns between BAX and XLV is 0.51 over 3 years, 0.52 over 1 year and 0.50 over 5 years.
Is XLV a good diversifier for BAX?
Only partially. A correlation of 0.51 means BAX and XLV share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.51 mean?
On the −1 to +1 scale, 0.51 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/bax-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bax-vs-xlv/)
Free with attribution; caching and terms are described in the API documentation.
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Hubs: BAX correlations · XLV correlations
