IBB vs XENE: Correlation
Measured on weekly returns over the past three years, iShares Biotechnology ETF (IBB) and Xenon Pharmaceuticals Inc. (XENE) carry a correlation of 0.53, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBB and XENE?
Over the past 3 years, IBB and XENE moved with a correlation of 0.53, which is moderate. The link has loosened recently: the 1-year correlation (0.29) runs below the 3-year figure (0.53). Over 5 years the correlation is 0.27, and the annualized covariance of weekly returns is 479.9 %².
Among the 168 assets we track against IBB, XENE ranks #81 by 3-year correlation. Their 12-month results are close: +55.4% for IBB against +59.3% for XENE. One caveat on sizing: XENE is 2.1 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.
IBB vs XENE: side by side
| IBB (iShares Biotechnology ETF) | XENE (Xenon Pharmaceuticals Inc.) | |
|---|---|---|
| 1-year return | +55.4% | +59.3% |
| 5-year return | +26.6% | +266.2% |
| Volatility (ann.) | 20.7% | 44.0% |
| Beta vs S&P 500 | 0.81 | 0.83 |
| Max drawdown (3Y) | -24.9% | -43.6% |
| Market cap | – | $6.0B |
| P/E (trailing) | – | – |
| Dividend yield | 0.22% | 0.00% |
| Expense ratio | 0.44% | – |
| Assets under management | $9.2B | – |
| Sector / category | ETF · Thematic | US Listed |
IBB, iShares's Health fund, carries $9.2B under management, 235 holdings, a 0.44% expense ratio, a 0.22% trailing dividend yield.
Year-by-year returns
| Year | IBB | XENE |
|---|---|---|
| 2022 | -13.7% | +26.2% |
| 2023 | +3.8% | +16.8% |
| 2024 | -2.4% | -14.9% |
| 2025 | +28.0% | +14.3% |
| 2026 | +27.4% | +38.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that IBB holds XENE at a 0.4% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are IBB and XENE good diversifiers for each other?
Somewhat, no more. With 0.53 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IBB and XENE?
The IBB/XENE correlation stands at 0.53 on a 3-year window (1 year: 0.29, 5 years: 0.27), computed from weekly returns as of 2026-08-27.
Is XENE a good diversifier for IBB?
Somewhat, no more. With 0.53 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.53 mean?
A reading of 0.53 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/ibb-vs-xene.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ibb-vs-xene/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IBB correlations · XENE correlations
