TAN vs XBI: Correlation
Invesco Solar ETF (TAN) and SPDR S&P Biotech ETF (XBI) show a moderate relationship: their 3-year correlation of weekly returns is 0.43.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TAN and XBI?
On 3 years of weekly data the TAN/XBI correlation comes out at 0.43, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.19 versus 0.43 over 3 years. The 5-year figure is 0.45, and annualized covariance runs at 439.7 %².
Within TAN's tracked universe of 37 assets, XBI comes in at #22 by 3-year correlation. The last year tells two different stories: XBI led by 65.8 percentage points, +21.4% for TAN against +87.2% for XBI. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.19 to 0.74.
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.
TAN vs XBI: side by side
| TAN (Invesco Solar ETF) | XBI (SPDR S&P Biotech ETF) | |
|---|---|---|
| 1-year return | +21.4% | +87.2% |
| 5-year return | -41.9% | +28.6% |
| Volatility (ann.) | 37.4% | 27.7% |
| Beta vs S&P 500 | 1.04 | 1.09 |
| Max drawdown (3Y) | -55.4% | -33.0% |
| Sector / category | ETF · Thematic | ETF · Thematic |
Year-by-year returns
| Year | TAN | XBI |
|---|---|---|
| 2022 | -5.2% | -25.9% |
| 2023 | -26.8% | +7.6% |
| 2024 | -37.6% | +1.0% |
| 2025 | +48.3% | +35.9% |
| 2026 | +1.3% | +38.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TAN and XBI good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.43 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between TAN and XBI?
Using weekly returns as of 2026-08-27: 0.43 over 3 years, with 0.19 over the last year and 0.45 over 5 years.
Is XBI a good diversifier for TAN?
Yes, to a useful degree: a correlation of 0.43 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.43 mean?
A reading of 0.43 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/tan-vs-xbi.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/tan-vs-xbi/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: TAN correlations · XBI correlations
