MRK vs SCHD: Correlation
How closely do Merck & Co. (MRK) and Schwab US Dividend Equity ETF (SCHD) trade together? Their weekly returns over three years give a correlation of 0.48, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MRK and SCHD?
Over the past 3 years, MRK and SCHD moved with a correlation of 0.48, which is moderate. The relationship has been stable: the 1-year correlation (0.58) sits close to the 3-year figure. Over 5 years the correlation is 0.37, and the annualized covariance of weekly returns is 170.8 %².
Among the 34 assets we track against MRK, SCHD ranks #12 by 3-year correlation. The last year tells two different stories: MRK led by 54.2 percentage points, +83.8% for MRK against +29.6% for SCHD. This link changes with the market regime, having swung between 0.06 and 0.62 on a rolling one-year basis. Risk is not evenly split, since MRK carries 2.2 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.
MRK vs SCHD: side by side
| MRK (Merck & Co.) | SCHD (Schwab US Dividend Equity ETF) | |
|---|---|---|
| 1-year return | +83.8% | +29.6% |
| 5-year return | +128.5% | +60.9% |
| Volatility (ann.) | 27.9% | 12.9% |
| Beta vs S&P 500 | 0.28 | 0.52 |
| Max drawdown (3Y) | -43.4% | -16.1% |
| Market cap | $368.9B | – |
| P/E (trailing) | 121.6 | – |
| Dividend yield | 2.17% | 3.13% |
| Expense ratio | – | 0.06% |
| Assets under management | – | $104.2B |
| Sector / category | Health Care | ETF · Dividend |
SCHD, Schwab ETFs's Large Value fund, carries $104.2B under management, 101 holdings, a 0.06% expense ratio, a 3.13% trailing dividend yield.
Year-by-year returns
| Year | MRK | SCHD |
|---|---|---|
| 2022 | +49.4% | -3.3% |
| 2023 | +1.0% | +4.5% |
| 2024 | -6.3% | +11.7% |
| 2025 | +9.8% | +4.3% |
| 2026 | +44.1% | +29.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 4.92% of SCHD is MRK itself, so the fund partly moves with the stock by construction.
Are MRK and SCHD good diversifiers for each other?
A fair diversifier. At 0.48, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between MRK and SCHD?
The MRK/SCHD correlation stands at 0.48 on a 3-year window (1 year: 0.58, 5 years: 0.37), computed from weekly returns as of 2026-08-27.
Is SCHD a good diversifier for MRK?
A fair diversifier. At 0.48, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.48 mean?
A reading of 0.48 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/mrk-vs-schd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mrk-vs-schd/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MRK correlations · SCHD correlations
