JNJ vs XLP: Correlation
How closely do Johnson & Johnson (JNJ) and Consumer Staples Select Sector SPDR Fund (XLP) trade together? Their weekly returns over three years give a correlation of 0.54, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are JNJ and XLP?
Over the past 3 years, JNJ and XLP moved with a correlation of 0.54, which is moderate. Little has changed lately, as the 1-year reading of 0.58 lands near the 3-year figure. Over 5 years the correlation is 0.54, and the annualized covariance of weekly returns is 111.7 %².
Within JNJ's tracked universe of 48 assets, XLP comes in at #6 by 3-year correlation. The last year tells two different stories: JNJ led by 45.4 percentage points, +53.7% for JNJ against +8.3% for XLP. Stability stands out here, with the rolling one-year correlation confined to 0.46 through 0.65. Risk is not evenly split, since JNJ 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.
JNJ vs XLP: side by side
| JNJ (Johnson & Johnson) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +53.7% | +8.3% |
| 5-year return | +76.0% | +34.7% |
| Volatility (ann.) | 18.5% | 11.1% |
| Beta vs S&P 500 | 0.05 | 0.23 |
| Max drawdown (3Y) | -14.4% | -9.7% |
| Market cap | $640.5B | – |
| P/E (trailing) | 30.9 | – |
| Dividend yield | 1.94% | 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 | JNJ | XLP |
|---|---|---|
| 2022 | +6.0% | -0.8% |
| 2023 | -8.6% | -0.8% |
| 2024 | -4.8% | +12.2% |
| 2025 | +47.5% | +1.5% |
| 2026 | +30.5% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are JNJ and XLP good diversifiers for each other?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between JNJ and XLP?
The JNJ/XLP correlation stands at 0.54 on a 3-year window (1 year: 0.58, 5 years: 0.54), computed from weekly returns as of 2026-08-27.
Is XLP a good diversifier for JNJ?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.54 mean?
A reading of 0.54 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/jnj-vs-xlp.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/jnj-vs-xlp/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: JNJ correlations · XLP correlations
