DGX vs XLP: Correlation
Measured on weekly returns over the past three years, Quest Diagnostics (DGX) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of 0.42, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGX and XLP?
Across a 3-year window, the weekly returns of DGX and XLP correlate at 0.42, moderate. Recent behaviour matches the longer record: 0.51 over 1 year against 0.42 over 3. Stretching to 5 years gives 0.40, with an annualized covariance of 89.8 %².
By 3-year correlation, XLP places #7 of the 32 assets tracked against DGX. The last year tells two different stories: DGX led by 30.2 percentage points, +38.5% for DGX against +8.3% for XLP. Across three years, the rolling one-year figure varied moderately, from 0.11 to 0.58. Risk is not evenly split, since DGX carries 1.7 times the volatility of the other side.
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.
DGX vs XLP: side by side
| DGX (Quest Diagnostics) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +38.5% | +8.3% |
| 5-year return | +78.8% | +34.7% |
| Volatility (ann.) | 19.1% | 11.1% |
| Beta vs S&P 500 | 0.09 | 0.23 |
| Max drawdown (3Y) | -12.4% | -9.7% |
| Market cap | $27.0B | – |
| P/E (trailing) | 26.0 | – |
| Dividend yield | 1.36% | 2.58% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $14.6B |
| Sector / category | Health Care | Sector ETF |
On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Year-by-year returns
| Year | DGX | XLP |
|---|---|---|
| 2022 | -7.8% | -0.8% |
| 2023 | -10.1% | -0.8% |
| 2024 | +11.8% | +12.2% |
| 2025 | +17.2% | +1.5% |
| 2026 | +42.8% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGX and XLP good diversifiers for each other?
Reasonably. At 0.42, DGX and XLP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between DGX and XLP?
As of 2026-08-27, the correlation of weekly returns between DGX and XLP is 0.42 over 3 years, 0.51 over 1 year and 0.40 over 5 years.
Is XLP a good diversifier for DGX?
Reasonably. At 0.42, DGX and XLP keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.42 mean?
On the −1 to +1 scale, 0.42 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/dgx-vs-xlp.json
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[](https://www.pairbook.io/pair/dgx-vs-xlp/)
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Related comparisons
Hubs: DGX correlations · XLP correlations
