DNLI vs XBI: Correlation
Measured on weekly returns over the past three years, Denali Therapeutics Inc. (DNLI) and SPDR S&P Biotech ETF (XBI) carry a correlation of 0.74, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DNLI and XBI?
Over the past 3 years, DNLI and XBI moved with a correlation of 0.74, which is strong. Recent behaviour matches the longer record: 0.70 over 1 year against 0.74 over 3. Over 5 years the correlation is 0.75, and the annualized covariance of weekly returns is 1237.2 %².
Few assets follow DNLI as closely as XBI, which ranks #1 of 25 tracked partners. Correlation aside, the last 12 months split them widely, with XBI ahead by 29.1 points (+58.1% versus +87.2%). One caveat on sizing: DNLI is 2.2 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.
DNLI vs XBI: side by side
| DNLI (Denali Therapeutics Inc.) | XBI (SPDR S&P Biotech ETF) | |
|---|---|---|
| 1-year return | +58.1% | +87.2% |
| 5-year return | -53.4% | +28.6% |
| Volatility (ann.) | 60.6% | 27.7% |
| Beta vs S&P 500 | 2.02 | 1.09 |
| Max drawdown (3Y) | -63.7% | -33.0% |
| Market cap | $3.9B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | DNLI | XBI |
|---|---|---|
| 2022 | -37.6% | -25.9% |
| 2023 | -22.8% | +7.6% |
| 2024 | -5.0% | +1.0% |
| 2025 | -19.0% | +35.9% |
| 2026 | +49.4% | +38.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DNLI and XBI good diversifiers for each other?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between DNLI and XBI?
As of 2026-08-27, the correlation of weekly returns between DNLI and XBI is 0.74 over 3 years, 0.70 over 1 year and 0.75 over 5 years.
Is XBI a good diversifier for DNLI?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.74 mean?
A reading of 0.74 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
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Embed this badge (it refreshes with the data), with attribution:
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Related comparisons
Hubs: DNLI correlations · XBI correlations
