ARWR vs XBI: Correlation
How closely do Arrowhead Pharmaceuticals, Inc. (ARWR) and SPDR S&P Biotech ETF (XBI) trade together? Their weekly returns over three years give a correlation of 0.57, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARWR and XBI?
On 3 years of weekly data the ARWR/XBI correlation comes out at 0.57, moderate. The link has loosened recently: the 1-year correlation (0.36) runs below the 3-year figure (0.57). The 5-year figure is 0.62, and annualized covariance runs at 1031.2 %².
In ARWR's tracked universe of 12 assets, XBI sits right near the top at #2. Their recent paths diverged sharply: over the last 12 months ARWR outperformed by 219.4 percentage points (+306.6% for ARWR against +87.2% for XBI). Risk is not evenly split, since ARWR 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.
ARWR vs XBI: side by side
| ARWR (Arrowhead Pharmaceuticals, Inc.) | XBI (SPDR S&P Biotech ETF) | |
|---|---|---|
| 1-year return | +306.6% | +87.2% |
| 5-year return | +32.5% | +28.6% |
| Volatility (ann.) | 65.8% | 27.7% |
| Beta vs S&P 500 | 2.19 | 1.09 |
| Max drawdown (3Y) | -74.7% | -33.0% |
| Market cap | $12.5B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | ARWR | XBI |
|---|---|---|
| 2022 | -38.8% | -25.9% |
| 2023 | -24.6% | +7.6% |
| 2024 | -38.6% | +1.0% |
| 2025 | +253.1% | +35.9% |
| 2026 | +33.4% | +38.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARWR and XBI good diversifiers for each other?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ARWR and XBI?
As of 2026-08-27, the correlation of weekly returns between ARWR and XBI is 0.57 over 3 years, 0.36 over 1 year and 0.62 over 5 years.
Is XBI a good diversifier for ARWR?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.57 mean?
On the −1 to +1 scale, 0.57 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/arwr-vs-xbi.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/arwr-vs-xbi/)
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Related comparisons
Hubs: ARWR correlations · XBI correlations
