LGND vs XBI: Correlation
How closely do Ligand Pharmaceuticals Incorporated (LGND) and SPDR S&P Biotech ETF (XBI) trade together? Their weekly returns over three years give a correlation of 0.50, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LGND and XBI?
Over the past 3 years, LGND and XBI moved with a correlation of 0.50, which is moderate. Little has changed lately, as the 1-year reading of 0.50 lands near the 3-year figure. Over 5 years the correlation is 0.56, and the annualized covariance of weekly returns is 489.7 %².
In LGND's tracked universe of 11 assets, XBI sits right near the top at #2. The trailing year gives XBI the advantage: +78.8% versus +87.2%, a 8.4-point spread.
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.
LGND vs XBI: side by side
| LGND (Ligand Pharmaceuticals Incorporated) | XBI (SPDR S&P Biotech ETF) | |
|---|---|---|
| 1-year return | +78.8% | +87.2% |
| 5-year return | +276.5% | +28.6% |
| Volatility (ann.) | 35.4% | 27.7% |
| Beta vs S&P 500 | 1.02 | 1.09 |
| Max drawdown (3Y) | -25.6% | -33.0% |
| Market cap | $5.7B | – |
| P/E (trailing) | 29.7 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | LGND | XBI |
|---|---|---|
| 2022 | -30.7% | -25.9% |
| 2023 | +6.9% | +7.6% |
| 2024 | +50.0% | +1.0% |
| 2025 | +76.5% | +35.9% |
| 2026 | +50.5% | +38.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LGND and XBI good diversifiers for each other?
To a limited degree. At 0.50 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 LGND and XBI?
The LGND/XBI correlation stands at 0.50 on a 3-year window (1 year: 0.50, 5 years: 0.56), computed from weekly returns as of 2026-08-27.
Is XBI a good diversifier for LGND?
To a limited degree. At 0.50 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 0.50 mean?
On the −1 to +1 scale, 0.50 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/lgnd-vs-xbi.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/lgnd-vs-xbi/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: LGND correlations · XBI correlations
