W vs XBI: Correlation
Measured on weekly returns over the past three years, Wayfair Inc. (W) and SPDR S&P Biotech ETF (XBI) carry a correlation of 0.58, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are W and XBI?
Over the past 3 years, W and XBI moved with a correlation of 0.58, which is moderate. Little has changed lately, as the 1-year reading of 0.54 lands near the 3-year figure. Over 5 years the correlation is 0.62, and the annualized covariance of weekly returns is 1081.1 %².
By 3-year correlation, XBI places #5 of the 19 assets tracked against W. Correlation aside, the last 12 months split them widely, with XBI ahead by 46.2 points (+41.0% versus +87.2%). Note the risk asymmetry: W runs 2.4 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.
W vs XBI: side by side
| W (Wayfair Inc.) | XBI (SPDR S&P Biotech ETF) | |
|---|---|---|
| 1-year return | +41.0% | +87.2% |
| 5-year return | -64.0% | +28.6% |
| Volatility (ann.) | 67.1% | 27.7% |
| Beta vs S&P 500 | 2.50 | 1.09 |
| Max drawdown (3Y) | -67.7% | -33.0% |
| Market cap | $14.4B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | W | XBI |
|---|---|---|
| 2022 | -82.7% | -25.9% |
| 2023 | +87.6% | +7.6% |
| 2024 | -28.2% | +1.0% |
| 2025 | +126.6% | +35.9% |
| 2026 | +4.6% | +38.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are W and XBI good diversifiers for each other?
Only partially. A correlation of 0.58 means W 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 W and XBI?
As of 2026-08-27, the correlation of weekly returns between W and XBI is 0.58 over 3 years, 0.54 over 1 year and 0.62 over 5 years.
Is XBI a good diversifier for W?
Only partially. A correlation of 0.58 means W 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 0.58 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: W correlations · XBI correlations
