RDY vs XLV: Correlation
How closely do Dr. Reddy's Laboratories Ltd (RDY) and Health Care Select Sector SPDR Fund (XLV) trade together? Their weekly returns over three years give a correlation of 0.37, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RDY and XLV?
Across a 3-year window, the weekly returns of RDY and XLV correlate at 0.37, moderate. Recent behaviour matches the longer record: 0.39 over 1 year against 0.37 over 3. Stretching to 5 years gives 0.36, with an annualized covariance of 129.2 %².
By 3-year correlation, XLV places #4 of the 10 assets tracked against RDY. The last year tells two different stories: XLV led by 41.5 percentage points, -14.0% for RDY against +27.5% for XLV. Risk is not evenly split, since RDY carries 1.6 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.
RDY vs XLV: side by side
| RDY (Dr. Reddy's Laboratories Ltd) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -14.0% | +27.5% |
| 5-year return | +1.0% | +37.4% |
| Volatility (ann.) | 23.9% | 14.7% |
| Beta vs S&P 500 | 0.32 | 0.42 |
| Max drawdown (3Y) | -32.0% | -17.1% |
| Market cap | $10.1B | – |
| P/E (trailing) | 29.0 | – |
| Dividend yield | 65.47% | 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 | RDY | XLV |
|---|---|---|
| 2022 | -19.7% | -2.1% |
| 2023 | +36.5% | +2.1% |
| 2024 | +14.1% | +2.5% |
| 2025 | -10.5% | +14.5% |
| 2026 | -12.8% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are RDY and XLV good diversifiers for each other?
A fair diversifier. At 0.37, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between RDY and XLV?
The RDY/XLV correlation stands at 0.37 on a 3-year window (1 year: 0.39, 5 years: 0.36), computed from weekly returns as of 2026-08-27.
Is XLV a good diversifier for RDY?
A fair diversifier. At 0.37, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.37 mean?
On the −1 to +1 scale, 0.37 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/rdy-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/rdy-vs-xlv/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: RDY correlations · XLV correlations
