TARS vs XBI: Correlation
How closely do Tarsus Pharmaceuticals, Inc. (TARS) and SPDR S&P Biotech ETF (XBI) trade together? Their weekly returns over three years give a correlation of 0.36, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TARS and XBI?
Across a 3-year window, the weekly returns of TARS and XBI correlate at 0.36, moderate. The relationship has been stable: the 1-year correlation (0.34) sits close to the 3-year figure. Stretching to 5 years gives 0.36, with an annualized covariance of 534.9 %².
By 3-year correlation, XBI places #5 of the 15 assets tracked against TARS. Correlation aside, the last 12 months split them widely, with XBI ahead by 62.8 points (+24.4% versus +87.2%). Note the risk asymmetry: TARS runs 1.9 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.
TARS vs XBI: side by side
| TARS (Tarsus Pharmaceuticals, Inc.) | XBI (SPDR S&P Biotech ETF) | |
|---|---|---|
| 1-year return | +24.4% | +87.2% |
| 5-year return | +171.4% | +28.6% |
| Volatility (ann.) | 53.2% | 27.7% |
| Beta vs S&P 500 | 0.51 | 1.09 |
| Max drawdown (3Y) | -45.1% | -33.0% |
| Market cap | $3.2B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | TARS | XBI |
|---|---|---|
| 2022 | -34.8% | -25.9% |
| 2023 | +38.1% | +7.6% |
| 2024 | +173.4% | +1.0% |
| 2025 | +47.9% | +35.9% |
| 2026 | -12.2% | +38.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TARS and XBI good diversifiers for each other?
A fair diversifier. At 0.36, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between TARS and XBI?
Using weekly returns as of 2026-08-27: 0.36 over 3 years, with 0.34 over the last year and 0.36 over 5 years.
Is XBI a good diversifier for TARS?
A fair diversifier. At 0.36, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.36 mean?
On the −1 to +1 scale, 0.36 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: TARS correlations · XBI correlations
