ARQT vs XBI: Correlation
Measured on weekly returns over the past three years, Arcutis Biotherapeutics, Inc. (ARQT) and SPDR S&P Biotech ETF (XBI) carry a correlation of 0.42, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARQT and XBI?
Over the past 3 years, ARQT and XBI 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 0.40, and the annualized covariance of weekly returns is 953.8 %².
By 3-year correlation, XBI places #4 of the 10 assets tracked against ARQT. Their recent paths diverged sharply: over the last 12 months XBI outperformed by 28.3 percentage points (+58.9% for ARQT against +87.2% for XBI). One caveat on sizing: ARQT is 3.0 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.
ARQT vs XBI: side by side
| ARQT (Arcutis Biotherapeutics, Inc.) | XBI (SPDR S&P Biotech ETF) | |
|---|---|---|
| 1-year return | +58.9% | +87.2% |
| 5-year return | +18.0% | +28.6% |
| Volatility (ann.) | 81.9% | 27.7% |
| Beta vs S&P 500 | 1.10 | 1.09 |
| Max drawdown (3Y) | -79.5% | -33.0% |
| Market cap | $3.1B | – |
| P/E (trailing) | 113.0 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | ARQT | XBI |
|---|---|---|
| 2022 | -28.6% | -25.9% |
| 2023 | -78.2% | +7.6% |
| 2024 | +331.3% | +1.0% |
| 2025 | +108.5% | +35.9% |
| 2026 | -14.4% | +38.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARQT and XBI good diversifiers for each other?
Reasonably. At 0.42, ARQT and XBI keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between ARQT and XBI?
Using weekly returns as of 2026-08-27: 0.42 over 3 years, with 0.41 over the last year and 0.40 over 5 years.
Is XBI a good diversifier for ARQT?
Reasonably. At 0.42, ARQT and XBI keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.42 mean?
A reading of 0.42 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/arqt-vs-xbi.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/arqt-vs-xbi/)
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Related comparisons
Hubs: ARQT correlations · XBI correlations
