TMO vs XLV: Correlation
Thermo Fisher Scientific (TMO) and Health Care Select Sector SPDR Fund (XLV) show a strong relationship: their 3-year correlation of weekly returns is 0.67.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TMO and XLV?
On 3 years of weekly data the TMO/XLV correlation comes out at 0.67, strong. Little has changed lately, as the 1-year reading of 0.62 lands near the 3-year figure. The 5-year figure is 0.69, and annualized covariance runs at 289.6 %².
Among the 38 assets we track against TMO, XLV ranks #8 by 3-year correlation. Their 12-month results are close: +29.7% for TMO against +27.5% for XLV. The rolling one-year correlation moved between 0.47 and 0.81 over the past three years, a moderate range. Risk is not evenly split, since TMO carries 2.0 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.
TMO vs XLV: side by side
| TMO (Thermo Fisher Scientific) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +29.7% | +27.5% |
| 5-year return | +14.5% | +37.4% |
| Volatility (ann.) | 29.4% | 14.7% |
| Beta vs S&P 500 | 0.74 | 0.42 |
| Max drawdown (3Y) | -37.3% | -17.1% |
| Market cap | $233.2B | – |
| P/E (trailing) | 34.1 | – |
| Dividend yield | 0.28% | 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 | TMO | XLV |
|---|---|---|
| 2022 | -17.3% | -2.1% |
| 2023 | -3.4% | +2.1% |
| 2024 | -1.7% | +2.5% |
| 2025 | +11.8% | +14.5% |
| 2026 | +9.1% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 3.76% of XLV is TMO itself, so the fund partly moves with the stock by construction.
Are TMO and XLV good diversifiers for each other?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between TMO and XLV?
Using weekly returns as of 2026-08-27: 0.67 over 3 years, with 0.62 over the last year and 0.69 over 5 years.
Is XLV a good diversifier for TMO?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.67 mean?
On the −1 to +1 scale, 0.67 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/tmo-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/tmo-vs-xlv/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: TMO correlations · XLV correlations
