JNJ vs MRK: Correlation
Measured on weekly returns over the past three years, Johnson & Johnson (JNJ) and Merck & Co. (MRK) carry a correlation of 0.49, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are JNJ and MRK?
On 3 years of weekly data the JNJ/MRK correlation comes out at 0.49, moderate. The past 12 months show a tighter link (0.64) than the 3-year average (0.49). The 5-year figure is 0.48, and annualized covariance runs at 251.8 %².
By 3-year correlation, MRK places #19 of the 48 assets tracked against JNJ. Correlation aside, the last 12 months split them widely, with MRK ahead by 30.1 points (+53.7% versus +83.8%). The rolling one-year correlation moved between 0.18 and 0.64 over the past three years, a moderate range. Note the risk asymmetry: MRK runs 1.5 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.
JNJ vs MRK: side by side
| JNJ (Johnson & Johnson) | MRK (Merck & Co.) | |
|---|---|---|
| 1-year return | +53.7% | +83.8% |
| 5-year return | +76.0% | +128.5% |
| Volatility (ann.) | 18.5% | 27.9% |
| Beta vs S&P 500 | 0.05 | 0.28 |
| Max drawdown (3Y) | -14.4% | -43.4% |
| Market cap | $640.5B | $368.9B |
| P/E (trailing) | 30.9 | 121.6 |
| Dividend yield | 1.94% | 2.17% |
| Sector / category | Health Care | Health Care |
Year-by-year returns
| Year | JNJ | MRK |
|---|---|---|
| 2022 | +6.0% | +49.4% |
| 2023 | -8.6% | +1.0% |
| 2024 | -4.8% | -6.3% |
| 2025 | +47.5% | +9.8% |
| 2026 | +30.5% | +44.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are JNJ and MRK good diversifiers for each other?
Reasonably. At 0.49, JNJ and MRK keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between JNJ and MRK?
Using weekly returns as of 2026-08-27: 0.49 over 3 years, with 0.64 over the last year and 0.48 over 5 years.
Is MRK a good diversifier for JNJ?
Reasonably. At 0.49, JNJ and MRK keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.49 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/jnj-vs-mrk.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/jnj-vs-mrk/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: JNJ correlations · MRK correlations
