STE vs XLV: Correlation
How closely do Steris (STE) and Health Care Select Sector SPDR Fund (XLV) trade together? Their weekly returns over three years give a correlation of 0.40, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are STE and XLV?
Across a 3-year window, the weekly returns of STE and XLV correlate at 0.40, moderate. Recent behaviour matches the longer record: 0.35 over 1 year against 0.40 over 3. Stretching to 5 years gives 0.52, with an annualized covariance of 132.9 %².
Within STE's tracked universe of 33 assets, XLV comes in at #16 by 3-year correlation. The last year tells two different stories: XLV led by 33.2 percentage points, -5.7% for STE against +27.5% for XLV. The rolling one-year correlation moved between 0.17 and 0.66 over the past three years, a moderate range. One caveat on sizing: STE is 1.5 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
STE vs XLV: side by side
| STE (Steris) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -5.7% | +27.5% |
| 5-year return | +13.6% | +37.4% |
| Volatility (ann.) | 22.3% | 14.7% |
| Beta vs S&P 500 | 0.43 | 0.42 |
| Max drawdown (3Y) | -25.4% | -17.1% |
| Market cap | $22.7B | – |
| P/E (trailing) | 28.5 | – |
| Dividend yield | 1.06% | 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 | STE | XLV |
|---|---|---|
| 2022 | -23.4% | -2.1% |
| 2023 | +20.2% | +2.1% |
| 2024 | -5.6% | +2.5% |
| 2025 | +24.3% | +14.5% |
| 2026 | -7.6% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
STE represents 0.37% of XLV's portfolio, so part of any move in XLV is STE itself, and the correlation between them is partly mechanical.
Are STE and XLV good diversifiers for each other?
Reasonably. At 0.40, STE and XLV keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between STE and XLV?
Using weekly returns as of 2026-08-27: 0.40 over 3 years, with 0.35 over the last year and 0.52 over 5 years.
Is XLV a good diversifier for STE?
Reasonably. At 0.40, STE and XLV keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.40 mean?
A reading of 0.40 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/ste-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ste-vs-xlv/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: STE correlations · XLV correlations
