ARWR vs IBB: Correlation
How closely do Arrowhead Pharmaceuticals, Inc. (ARWR) and iShares Biotechnology ETF (IBB) trade together? Their weekly returns over three years give a correlation of 0.53, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARWR and IBB?
Across a 3-year window, the weekly returns of ARWR and IBB correlate at 0.53, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.26 versus 0.53 over 3 years. Stretching to 5 years gives 0.54, with an annualized covariance of 715.3 %².
In ARWR's tracked universe of 12 assets, IBB sits right near the top at #3. Their recent paths diverged sharply: over the last 12 months ARWR outperformed by 251.2 percentage points (+306.6% for ARWR against +55.4% for IBB). Risk is not evenly split, since ARWR carries 3.2 times the volatility of the other side.
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.
ARWR vs IBB: side by side
| ARWR (Arrowhead Pharmaceuticals, Inc.) | IBB (iShares Biotechnology ETF) | |
|---|---|---|
| 1-year return | +306.6% | +55.4% |
| 5-year return | +32.5% | +26.6% |
| Volatility (ann.) | 65.8% | 20.7% |
| Beta vs S&P 500 | 2.19 | 0.81 |
| Max drawdown (3Y) | -74.7% | -24.9% |
| Market cap | $12.5B | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 0.22% |
| Expense ratio | – | 0.44% |
| Assets under management | – | $9.2B |
| Sector / category | US Listed | 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 | ARWR | IBB |
|---|---|---|
| 2022 | -38.8% | -13.7% |
| 2023 | -24.6% | +3.8% |
| 2024 | -38.6% | -2.4% |
| 2025 | +253.1% | +28.0% |
| 2026 | +33.4% | +27.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that IBB holds ARWR at a 0.81% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are ARWR and IBB good diversifiers for each other?
To a limited degree. At 0.53 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 ARWR and IBB?
The ARWR/IBB correlation stands at 0.53 on a 3-year window (1 year: 0.26, 5 years: 0.54), computed from weekly returns as of 2026-08-27.
Is IBB a good diversifier for ARWR?
To a limited degree. At 0.53 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 0.53 mean?
A reading of 0.53 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/arwr-vs-ibb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/arwr-vs-ibb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ARWR correlations · IBB correlations
