CF vs LQD: Correlation
How closely do CF Industries (CF) and iShares iBoxx Investment Grade Corporate Bond ETF (LQD) trade together? Their weekly returns over three years give a correlation of -0.21, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CF and LQD?
On 3 years of weekly data the CF/LQD correlation comes out at -0.21, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.58 versus -0.21 over 3 years. The 5-year figure is -0.14, and annualized covariance runs at -50.1 %².
Among the 50 assets we track against CF, LQD ranks #33 by 3-year correlation. The last year tells two different stories: CF led by 47.1 percentage points, +48.6% for CF against +1.5% for LQD. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.56 to 0.10. Risk is not evenly split, since CF carries 4.5 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.
CF vs LQD: side by side
| CF (CF Industries) | LQD (iShares iBoxx Investment Grade Corporate Bond ETF) | |
|---|---|---|
| 1-year return | +48.6% | +1.5% |
| 5-year return | +211.5% | -4.1% |
| Volatility (ann.) | 32.8% | 7.3% |
| Beta vs S&P 500 | -0.20 | 0.15 |
| Max drawdown (3Y) | -29.2% | -6.7% |
| Market cap | $19.0B | – |
| P/E (trailing) | 9.3 | – |
| Dividend yield | 1.59% | 4.66% |
| Expense ratio | – | 0.14% |
| Assets under management | – | $33.0B |
| Sector / category | Materials | ETF · Bonds |
LQD, iShares's Corporate Bond fund, carries $33.0B under management, a 0.14% expense ratio, a 4.66% trailing dividend yield.
Year-by-year returns
| Year | CF | LQD |
|---|---|---|
| 2022 | +22.3% | -17.9% |
| 2023 | -4.7% | +9.4% |
| 2024 | +10.1% | +0.9% |
| 2025 | -7.2% | +7.9% |
| 2026 | +64.9% | -0.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CF and LQD good diversifiers for each other?
By historical standards, yes. A correlation of -0.21 means the two rarely move for the same reasons.
FAQ
What is the correlation between CF and LQD?
As of 2026-08-27, the correlation of weekly returns between CF and LQD is -0.21 over 3 years, -0.58 over 1 year and -0.14 over 5 years.
Is LQD a good diversifier for CF?
By historical standards, yes. A correlation of -0.21 means the two rarely move for the same reasons.
What does a correlation of -0.21 mean?
A reading of -0.21 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/cf-vs-lqd.json
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Related comparisons
Hubs: CF correlations · LQD correlations
