PRME vs XBI: Correlation
Measured on weekly returns over the past three years, Prime Medicine, Inc. (PRME) and SPDR S&P Biotech ETF (XBI) carry a correlation of 0.59, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PRME and XBI?
Across a 3-year window, the weekly returns of PRME and XBI correlate at 0.59, moderate. Recent behaviour matches the longer record: 0.50 over 1 year against 0.59 over 3. Stretching to 5 years gives 0.55, with an annualized covariance of 1609.9 %².
Among the 18 assets we track against PRME, XBI ranks #4 by 3-year correlation. The last year tells two different stories: XBI led by 81.1 percentage points, +6.1% for PRME against +87.2% for XBI. One caveat on sizing: PRME is 3.6 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.
PRME vs XBI: side by side
| PRME (Prime Medicine, Inc.) | XBI (SPDR S&P Biotech ETF) | |
|---|---|---|
| 1-year return | +6.1% | +87.2% |
| 5-year return | n/a | +28.6% |
| Volatility (ann.) | 98.7% | 27.7% |
| Beta vs S&P 500 | 2.97 | 1.09 |
| Max drawdown (3Y) | -91.4% | -33.0% |
| Market cap | $0.7B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | PRME | XBI |
|---|---|---|
| 2022 | – | -25.9% |
| 2023 | -52.3% | +7.6% |
| 2024 | -67.0% | +1.0% |
| 2025 | +18.8% | +35.9% |
| 2026 | +4.9% | +38.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are PRME and XBI good diversifiers for each other?
Somewhat, no more. With 0.59 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between PRME and XBI?
As of 2026-08-27, the correlation of weekly returns between PRME and XBI is 0.59 over 3 years, 0.50 over 1 year and 0.55 over 5 years.
Is XBI a good diversifier for PRME?
Somewhat, no more. With 0.59 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.59 mean?
On the −1 to +1 scale, 0.59 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/prme-vs-xbi.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/prme-vs-xbi/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: PRME correlations · XBI correlations
