NVO vs XLV: Correlation
Measured on weekly returns over the past three years, Novo Nordisk A/S (NVO) and Health Care Select Sector SPDR Fund (XLV) carry a correlation of 0.41, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NVO and XLV?
Across a 3-year window, the weekly returns of NVO and XLV correlate at 0.41, moderate. The past 12 months show a weaker link (0.20) than the 3-year average (0.41). Stretching to 5 years gives 0.43, with an annualized covariance of 278.9 %².
Among the 12 assets we track against NVO, XLV ranks #4 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLV ahead by 41.4 points (-13.9% versus +27.5%). Risk is not evenly split, since NVO carries 3.1 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.
NVO vs XLV: side by side
| NVO (Novo Nordisk A/S) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -13.9% | +27.5% |
| 5-year return | +1.3% | +37.4% |
| Volatility (ann.) | 45.9% | 14.7% |
| Beta vs S&P 500 | 1.06 | 0.42 |
| Max drawdown (3Y) | -74.7% | -17.1% |
| Market cap | $204.5B | – |
| P/E (trailing) | 11.5 | – |
| Dividend yield | 24.79% | 1.56% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $41.7B |
| Sector / category | US Listed | 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 | NVO | XLV |
|---|---|---|
| 2022 | +22.7% | -2.1% |
| 2023 | +54.8% | +2.1% |
| 2024 | -15.9% | +2.5% |
| 2025 | -39.2% | +14.5% |
| 2026 | -4.5% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NVO and XLV good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.41 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between NVO and XLV?
As of 2026-08-27, the correlation of weekly returns between NVO and XLV is 0.41 over 3 years, 0.20 over 1 year and 0.43 over 5 years.
Is XLV a good diversifier for NVO?
Yes, to a useful degree: a correlation of 0.41 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.41 mean?
On the −1 to +1 scale, 0.41 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
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Related comparisons
Hubs: NVO correlations · XLV correlations
