BME vs XBI: Correlation
How closely do Blackrock Health Sciences Trust (BME) and SPDR S&P Biotech ETF (XBI) trade together? Their weekly returns over three years give a correlation of 0.68, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BME and XBI?
On 3 years of weekly data the BME/XBI correlation comes out at 0.68, strong. Little has changed lately, as the 1-year reading of 0.63 lands near the 3-year figure. The 5-year figure is 0.61, and annualized covariance runs at 272.1 %².
By 3-year correlation, XBI places #7 of the 34 assets tracked against BME. Their recent paths diverged sharply: over the last 12 months XBI outperformed by 51.2 percentage points (+36.0% for BME against +87.2% for XBI). Note the risk asymmetry: XBI runs 1.9 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
BME vs XBI: side by side
| BME (Blackrock Health Sciences Trust) | XBI (SPDR S&P Biotech ETF) | |
|---|---|---|
| 1-year return | +36.0% | +87.2% |
| 5-year return | +33.5% | +28.6% |
| Volatility (ann.) | 14.4% | 27.7% |
| Beta vs S&P 500 | 0.45 | 1.09 |
| Max drawdown (3Y) | -14.4% | -33.0% |
| Market cap | – | – |
| P/E (trailing) | 7.8 | – |
| Dividend yield | 6.80% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | BME | XBI |
|---|---|---|
| 2022 | -4.6% | -25.9% |
| 2023 | -1.1% | +7.6% |
| 2024 | -0.1% | +1.0% |
| 2025 | +17.9% | +35.9% |
| 2026 | +17.9% | +38.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BME and XBI good diversifiers for each other?
To a limited degree. At 0.68 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between BME and XBI?
As of 2026-08-27, the correlation of weekly returns between BME and XBI is 0.68 over 3 years, 0.63 over 1 year and 0.61 over 5 years.
Is XBI a good diversifier for BME?
To a limited degree. At 0.68 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.68 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
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Related comparisons
Hubs: BME correlations · XBI correlations
