XLV vs ZBH: Correlation
Health Care Select Sector SPDR Fund (XLV) and Zimmer Biomet (ZBH) 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 XLV and ZBH?
Over the past 3 years, XLV and ZBH moved with a correlation of 0.42, which is moderate. The relationship has been stable: the 1-year correlation (0.41) sits close to the 3-year figure. Over 5 years the correlation is 0.48, and the annualized covariance of weekly returns is 154.8 %².
Among the 130 assets we track against XLV, ZBH ranks #69 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLV ahead by 33.4 points (+27.5% versus -5.9%). On a rolling one-year basis the correlation drifted between 0.23 and 0.58, a moderate band. Risk is not evenly split, since ZBH carries 1.7 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.
XLV vs ZBH: side by side
| XLV (Health Care Select Sector SPDR Fund) | ZBH (Zimmer Biomet) | |
|---|---|---|
| 1-year return | +27.5% | -5.9% |
| 5-year return | +37.4% | -28.6% |
| Volatility (ann.) | 14.7% | 24.9% |
| Beta vs S&P 500 | 0.42 | 0.51 |
| Max drawdown (3Y) | -17.1% | -38.8% |
| Market cap | – | $19.0B |
| P/E (trailing) | – | 24.6 |
| Dividend yield | 1.56% | 0.95% |
| Expense ratio | 0.08% | – |
| Assets under management | $41.7B | – |
| Sector / category | Sector ETF | Health Care |
XLV is a Health fund from State Street Investment Management: $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Year-by-year returns
| Year | XLV | ZBH |
|---|---|---|
| 2022 | -2.1% | +4.2% |
| 2023 | +2.1% | -3.8% |
| 2024 | +2.5% | -12.5% |
| 2025 | +14.5% | -14.0% |
| 2026 | +11.8% | +11.2% |
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 ZBH at a 0.31% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are XLV and ZBH good diversifiers for each other?
Reasonably. At 0.42, XLV and ZBH keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between XLV and ZBH?
Using weekly returns as of 2026-08-27: 0.42 over 3 years, with 0.41 over the last year and 0.48 over 5 years.
Is ZBH a good diversifier for XLV?
Reasonably. At 0.42, XLV and ZBH keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.42 mean?
On the −1 to +1 scale, 0.42 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/xlv-vs-zbh.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/xlv-vs-zbh/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: XLV correlations · ZBH correlations
