JNJ vs XLV: Correlation
How closely do Johnson & Johnson (JNJ) and Health Care Select Sector SPDR Fund (XLV) trade together? Their weekly returns over three years give a correlation of 0.61, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are JNJ and XLV?
Across a 3-year window, the weekly returns of JNJ and XLV correlate at 0.61, strong. Little has changed lately, as the 1-year reading of 0.67 lands near the 3-year figure. Stretching to 5 years gives 0.62, with an annualized covariance of 167.3 %².
XLV is one of the assets that tracks JNJ most closely: it ranks #1 out of the 48 assets we track against JNJ. The last year tells two different stories: JNJ led by 26.2 percentage points, +53.7% for JNJ against +27.5% for XLV. On a rolling one-year basis the correlation drifted between 0.41 and 0.78, a moderate band.
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 XLV: side by side
| JNJ (Johnson & Johnson) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +53.7% | +27.5% |
| 5-year return | +76.0% | +37.4% |
| Volatility (ann.) | 18.5% | 14.7% |
| Beta vs S&P 500 | 0.05 | 0.42 |
| Max drawdown (3Y) | -14.4% | -17.1% |
| Market cap | $640.5B | – |
| P/E (trailing) | 30.9 | – |
| Dividend yield | 1.94% | 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 | JNJ | XLV |
|---|---|---|
| 2022 | +6.0% | -2.1% |
| 2023 | -8.6% | +2.1% |
| 2024 | -4.8% | +2.5% |
| 2025 | +47.5% | +14.5% |
| 2026 | +30.5% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLV holds JNJ at a 10.38% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are JNJ and XLV good diversifiers for each other?
Only partially. A correlation of 0.61 means JNJ 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 JNJ and XLV?
Using weekly returns as of 2026-08-27: 0.61 over 3 years, with 0.67 over the last year and 0.62 over 5 years.
Is XLV a good diversifier for JNJ?
Only partially. A correlation of 0.61 means JNJ 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 0.61 mean?
On the −1 to +1 scale, 0.61 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/jnj-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/jnj-vs-xlv/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: JNJ correlations · XLV correlations
