VRTX vs XBI: Correlation
How closely do Vertex Pharmaceuticals (VRTX) and SPDR S&P Biotech ETF (XBI) trade together? Their weekly returns over three years give a correlation of 0.48, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VRTX and XBI?
On 3 years of weekly data the VRTX/XBI correlation comes out at 0.48, moderate. The relationship has been stable: the 1-year correlation (0.56) sits close to the 3-year figure. The 5-year figure is 0.44, and annualized covariance runs at 402.0 %².
By 3-year correlation, XBI places #8 of the 31 assets tracked against VRTX. The last year tells two different stories: XBI led by 46.5 percentage points, +40.7% for VRTX against +87.2% for XBI. The rolling one-year correlation moved between 0.23 and 0.58 over the past three years, a moderate range.
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.
VRTX vs XBI: side by side
| VRTX (Vertex Pharmaceuticals) | XBI (SPDR S&P Biotech ETF) | |
|---|---|---|
| 1-year return | +40.7% | +87.2% |
| 5-year return | +174.5% | +28.6% |
| Volatility (ann.) | 30.3% | 27.7% |
| Beta vs S&P 500 | 0.55 | 1.09 |
| Max drawdown (3Y) | -29.1% | -33.0% |
| Market cap | $138.8B | – |
| P/E (trailing) | 31.9 | – |
| Dividend yield | 0.00% | – |
| Sector / category | Health Care | ETF · Thematic |
Year-by-year returns
| Year | VRTX | XBI |
|---|---|---|
| 2022 | +31.5% | -25.9% |
| 2023 | +40.9% | +7.6% |
| 2024 | -1.0% | +1.0% |
| 2025 | +12.6% | +35.9% |
| 2026 | +20.8% | +38.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VRTX and XBI good diversifiers for each other?
Reasonably. At 0.48, VRTX and XBI keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between VRTX and XBI?
The VRTX/XBI correlation stands at 0.48 on a 3-year window (1 year: 0.56, 5 years: 0.44), computed from weekly returns as of 2026-08-27.
Is XBI a good diversifier for VRTX?
Reasonably. At 0.48, VRTX and XBI keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.48 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
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Related comparisons
Hubs: VRTX correlations · XBI correlations
