ARKK vs IBB: Correlation
How closely do ARK Innovation ETF (ARKK) and iShares Biotechnology ETF (IBB) trade together? Their weekly returns over three years give a correlation of 0.55, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARKK and IBB?
Over the past 3 years, ARKK and IBB moved with a correlation of 0.55, which is moderate. Recent behaviour matches the longer record: 0.52 over 1 year against 0.55 over 3. Over 5 years the correlation is 0.67, and the annualized covariance of weekly returns is 442.2 %².
Among the 122 assets we track against ARKK, IBB ranks #46 by 3-year correlation. Correlation aside, the last 12 months split them widely, with IBB ahead by 39.7 points (+15.7% versus +55.4%). Across three years, the rolling one-year figure varied moderately, from 0.39 to 0.77. One caveat on sizing: ARKK is 1.9 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
ARKK vs IBB: side by side
| ARKK (ARK Innovation ETF) | IBB (iShares Biotechnology ETF) | |
|---|---|---|
| 1-year return | +15.7% | +55.4% |
| 5-year return | -27.7% | +26.6% |
| Volatility (ann.) | 38.8% | 20.7% |
| Beta vs S&P 500 | 2.07 | 0.81 |
| Max drawdown (3Y) | -39.6% | -24.9% |
| Dividend yield | – | 0.22% |
| Expense ratio | – | 0.44% |
| Assets under management | – | $9.2B |
| Sector / category | ETF · Thematic | ETF · Thematic |
IBB, iShares's Health fund, carries $9.2B under management, 235 holdings, a 0.44% expense ratio, a 0.22% trailing dividend yield.
Year-by-year returns
| Year | ARKK | IBB |
|---|---|---|
| 2022 | -67.0% | -13.7% |
| 2023 | +69.0% | +3.8% |
| 2024 | +8.4% | -2.4% |
| 2025 | +35.5% | +28.0% |
| 2026 | +13.6% | +27.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARKK and IBB good diversifiers for each other?
To a limited degree. At 0.55 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between ARKK and IBB?
As of 2026-08-27, the correlation of weekly returns between ARKK and IBB is 0.55 over 3 years, 0.52 over 1 year and 0.67 over 5 years.
Is IBB a good diversifier for ARKK?
To a limited degree. At 0.55 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.55 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
$ curl https://www.pairbook.io/api/v1/pairs/arkk-vs-ibb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/arkk-vs-ibb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ARKK correlations · IBB correlations
