MDGL vs XBI: Correlation
How closely do Madrigal Pharmaceuticals, Inc. (MDGL) and SPDR S&P Biotech ETF (XBI) trade together? Their weekly returns over three years give a correlation of 0.43, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MDGL and XBI?
Across a 3-year window, the weekly returns of MDGL and XBI correlate at 0.43, moderate. The past 12 months show a weaker link (0.18) than the 3-year average (0.43). Stretching to 5 years gives 0.19, with an annualized covariance of 716.6 %².
Among the 14 assets we track against MDGL, XBI ranks #4 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XBI ahead by 59.3 points (+27.9% versus +87.2%). One caveat on sizing: MDGL 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.
MDGL vs XBI: side by side
| MDGL (Madrigal Pharmaceuticals, Inc.) | XBI (SPDR S&P Biotech ETF) | |
|---|---|---|
| 1-year return | +27.9% | +87.2% |
| 5-year return | +554.5% | +28.6% |
| Volatility (ann.) | 60.2% | 27.7% |
| Beta vs S&P 500 | 0.71 | 1.09 |
| Max drawdown (3Y) | -38.8% | -33.0% |
| Market cap | $12.6B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | MDGL | XBI |
|---|---|---|
| 2022 | +242.5% | -25.9% |
| 2023 | -20.3% | +7.6% |
| 2024 | +33.4% | +1.0% |
| 2025 | +88.7% | +35.9% |
| 2026 | -6.6% | +38.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MDGL and XBI good diversifiers for each other?
A fair diversifier. At 0.43, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between MDGL and XBI?
As of 2026-08-27, the correlation of weekly returns between MDGL and XBI is 0.43 over 3 years, 0.18 over 1 year and 0.19 over 5 years.
Is XBI a good diversifier for MDGL?
A fair diversifier. At 0.43, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.43 mean?
On the −1 to +1 scale, 0.43 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
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Related comparisons
Hubs: MDGL correlations · XBI correlations
