JNJ Stock Outperforms Market with Low Correlation and Strong Returns

Johnson & Johnson's stock has been on a remarkable run over the past year, rising 57.3% in the trailing twelve months and sitting at the top of its 52-week range.

However, what's striking is how little of this return comes from the broader market. Over the last five trading days, Johnson & Johnson gained 4.4% while the S&P 500 slipped 0.5%

The stock's independence from the market can be measured by its low correlation to the S&P 500 over the past five years, at just 0.16 on a scale where 1.0 would mean perfect lockstep.

This means that Johnson & Johnson largely moves independently of the broad market, which is a key trait of a genuine diversifier.

Over the same period, the stock has delivered an annualized return of 11.8% at 17.5% volatility, compared to 13.2% at 17.2% volatility for the S&P 500.