NVS vs RDY: Correlation
Novartis AG (NVS) and Dr. Reddy's Laboratories Ltd (RDY) show a moderate relationship: their 3-year correlation of weekly returns is 0.34.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NVS and RDY?
Across a 3-year window, the weekly returns of NVS and RDY correlate at 0.34, moderate. Recent behaviour matches the longer record: 0.31 over 1 year against 0.34 over 3. Stretching to 5 years gives 0.38, with an annualized covariance of 160.2 %².
By 3-year correlation, RDY places #15 of the 22 assets tracked against NVS. Their recent paths diverged sharply: over the last 12 months NVS outperformed by 39.6 percentage points (+25.6% for NVS against -14.0% for RDY).
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.
NVS vs RDY: side by side
| NVS (Novartis AG) | RDY (Dr. Reddy's Laboratories Ltd) | |
|---|---|---|
| 1-year return | +25.6% | -14.0% |
| 5-year return | +103.5% | +1.0% |
| Volatility (ann.) | 19.6% | 23.9% |
| Beta vs S&P 500 | 0.25 | 0.32 |
| Max drawdown (3Y) | -20.0% | -32.0% |
| Market cap | $293.9B | $10.1B |
| P/E (trailing) | 23.4 | 29.0 |
| Dividend yield | 2.96% | 65.47% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | NVS | RDY |
|---|---|---|
| 2022 | +8.1% | -19.7% |
| 2023 | +16.1% | +36.5% |
| 2024 | +0.0% | +14.1% |
| 2025 | +47.0% | -10.5% |
| 2026 | +15.6% | -12.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NVS and RDY good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.34 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between NVS and RDY?
The NVS/RDY correlation stands at 0.34 on a 3-year window (1 year: 0.31, 5 years: 0.38), computed from weekly returns as of 2026-08-27.
Is RDY a good diversifier for NVS?
Yes, to a useful degree: a correlation of 0.34 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.34 mean?
A reading of 0.34 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/nvs-vs-rdy.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/nvs-vs-rdy/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: NVS correlations · RDY correlations
