IRON vs XBI: Correlation
How closely do Disc Medicine, Inc. (IRON) and SPDR S&P Biotech ETF (XBI) trade together? Their weekly returns over three years give a correlation of 0.49, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IRON and XBI?
Over the past 3 years, IRON and XBI moved with a correlation of 0.49, which is moderate. Recent behaviour matches the longer record: 0.45 over 1 year against 0.49 over 3. Over 5 years the correlation is 0.37, and the annualized covariance of weekly returns is 813.0 %².
In IRON's tracked universe of 15 assets, XBI sits right near the top at #1. Correlation aside, the last 12 months split them widely, with XBI ahead by 49.5 points (+37.7% versus +87.2%). Note the risk asymmetry: IRON runs 2.2 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.
IRON vs XBI: side by side
| IRON (Disc Medicine, Inc.) | XBI (SPDR S&P Biotech ETF) | |
|---|---|---|
| 1-year return | +37.7% | +87.2% |
| 5-year return | -32.4% | +28.6% |
| Volatility (ann.) | 59.7% | 27.7% |
| Beta vs S&P 500 | 1.70 | 1.09 |
| Max drawdown (3Y) | -64.8% | -33.0% |
| Market cap | $3.2B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | IRON | XBI |
|---|---|---|
| 2022 | -77.2% | -25.9% |
| 2023 | +190.4% | +7.6% |
| 2024 | +9.8% | +1.0% |
| 2025 | +25.3% | +35.9% |
| 2026 | +4.0% | +38.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IRON and XBI good diversifiers for each other?
A fair diversifier. At 0.49, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between IRON and XBI?
The IRON/XBI correlation stands at 0.49 on a 3-year window (1 year: 0.45, 5 years: 0.37), computed from weekly returns as of 2026-08-27.
Is XBI a good diversifier for IRON?
A fair diversifier. At 0.49, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.49 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
$ curl https://www.pairbook.io/api/v1/pairs/iron-vs-xbi.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/iron-vs-xbi/)
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Related comparisons
Hubs: IRON correlations · XBI correlations
