SOLV vs XLV: Correlation
Solventum (SOLV) and Health Care Select Sector SPDR Fund (XLV) show a moderate relationship: their 3-year correlation of weekly returns is 0.42.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SOLV and XLV?
On 3 years of weekly data the SOLV/XLV correlation comes out at 0.42, moderate. Little has changed lately, as the 1-year reading of 0.47 lands near the 3-year figure. The 5-year figure is n/a, and annualized covariance runs at 198.8 %².
By 3-year correlation, XLV places #17 of the 30 assets tracked against SOLV. Neither side won the trailing year by much: +24.7% against +27.5%. The rolling one-year correlation stayed in a tight band between 0.34 and 0.55 over the past three years, which points to a structural rather than episodic relationship. Note the risk asymmetry: SOLV runs 2.1 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
SOLV vs XLV: side by side
| SOLV (Solventum) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +24.7% | +27.5% |
| 5-year return | n/a | +37.4% |
| Volatility (ann.) | 30.4% | 14.7% |
| Beta vs S&P 500 | 0.62 | 0.42 |
| Max drawdown (3Y) | -40.0% | -17.1% |
| Market cap | $15.5B | – |
| P/E (trailing) | 11.2 | – |
| Dividend yield | 0.00% | 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 | SOLV | XLV |
|---|---|---|
| 2022 | – | -2.1% |
| 2023 | – | +2.1% |
| 2024 | – | +2.5% |
| 2025 | +20.0% | +14.5% |
| 2026 | +14.8% | +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 SOLV at a 0.22% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are SOLV and XLV good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.42 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between SOLV and XLV?
As of 2026-08-27, the correlation of weekly returns between SOLV and XLV is 0.42 over 3 years, 0.47 over 1 year and n/a over 5 years.
Is XLV a good diversifier for SOLV?
Yes, to a useful degree: a correlation of 0.42 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.42 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/solv-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/solv-vs-xlv/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: SOLV correlations · XLV correlations
