WAT vs XLV: Correlation
Measured on weekly returns over the past three years, Waters Corporation (WAT) and Health Care Select Sector SPDR Fund (XLV) carry a correlation of 0.45, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are WAT and XLV?
Over the past 3 years, WAT and XLV moved with a correlation of 0.45, which is moderate. Recent behaviour matches the longer record: 0.36 over 1 year against 0.45 over 3. Over 5 years the correlation is 0.52, and the annualized covariance of weekly returns is 234.4 %².
Among the 33 assets we track against WAT, XLV ranks #16 by 3-year correlation. The last year tells two different stories: WAT led by 15.5 percentage points, +43.0% for WAT against +27.5% for XLV. The rolling one-year correlation moved between 0.34 and 0.70 over the past three years, a moderate range. Risk is not evenly split, since WAT carries 2.4 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.
WAT vs XLV: side by side
| WAT (Waters Corporation) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +43.0% | +27.5% |
| 5-year return | +2.0% | +37.4% |
| Volatility (ann.) | 35.3% | 14.7% |
| Beta vs S&P 500 | 0.89 | 0.42 |
| Max drawdown (3Y) | -33.4% | -17.1% |
| Market cap | $41.4B | – |
| P/E (trailing) | 105.3 | – |
| 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 | WAT | XLV |
|---|---|---|
| 2022 | -8.1% | -2.1% |
| 2023 | -3.9% | +2.1% |
| 2024 | +12.7% | +2.5% |
| 2025 | +2.4% | +14.5% |
| 2026 | +10.9% | +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 WAT at a 0.65% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are WAT and XLV good diversifiers for each other?
A fair diversifier. At 0.45, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between WAT and XLV?
Using weekly returns as of 2026-08-27: 0.45 over 3 years, with 0.36 over the last year and 0.52 over 5 years.
Is XLV a good diversifier for WAT?
A fair diversifier. At 0.45, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.45 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/wat-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/wat-vs-xlv/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: WAT correlations · XLV correlations
