TEM vs XBI: Correlation
Tempus AI, Inc. (TEM) and SPDR S&P Biotech ETF (XBI) show a moderate relationship: their 3-year correlation of weekly returns is 0.55.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TEM and XBI?
Across a 3-year window, the weekly returns of TEM and XBI correlate at 0.55, moderate. Little has changed lately, as the 1-year reading of 0.62 lands near the 3-year figure. Stretching to 5 years gives n/a, with an annualized covariance of 1540.2 %².
Few assets follow TEM as closely as XBI, which ranks #3 of 39 tracked partners. The last year tells two different stories: XBI led by 90.7 percentage points, -3.5% for TEM against +87.2% for XBI. Note the risk asymmetry: TEM runs 3.8 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.
TEM vs XBI: side by side
| TEM (Tempus AI, Inc.) | XBI (SPDR S&P Biotech ETF) | |
|---|---|---|
| 1-year return | -3.5% | +87.2% |
| 5-year return | n/a | +28.6% |
| Volatility (ann.) | 104.7% | 27.7% |
| Beta vs S&P 500 | 3.25 | 1.09 |
| Max drawdown (3Y) | -59.8% | -33.0% |
| Market cap | $12.8B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | TEM | XBI |
|---|---|---|
| 2022 | – | -25.9% |
| 2023 | – | +7.6% |
| 2024 | – | +1.0% |
| 2025 | +74.9% | +35.9% |
| 2026 | +19.7% | +38.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TEM and XBI good diversifiers for each other?
Only partially. A correlation of 0.55 means TEM and XBI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between TEM and XBI?
As of 2026-08-27, the correlation of weekly returns between TEM and XBI is 0.55 over 3 years, 0.62 over 1 year and n/a over 5 years.
Is XBI a good diversifier for TEM?
Only partially. A correlation of 0.55 means TEM and XBI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.55 mean?
On the −1 to +1 scale, 0.55 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/tem-vs-xbi.json
Embed this badge (it refreshes with the data), with attribution:
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Related comparisons
Hubs: TEM correlations · XBI correlations
