EMBJ vs HYG: Correlation
Measured on weekly returns over the past three years, Embraer S.A. (EMBJ) and iShares iBoxx High Yield Corporate Bond ETF (HYG) carry a correlation of 0.50, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EMBJ and HYG?
Across a 3-year window, the weekly returns of EMBJ and HYG correlate at 0.50, moderate. Little has changed lately, as the 1-year reading of 0.60 lands near the 3-year figure. Stretching to 5 years gives 0.47, with an annualized covariance of 97.4 %².
HYG is one of the assets that tracks EMBJ most closely: it ranks #2 out of the 10 assets we track against EMBJ. Correlation aside, the last 12 months split them widely, with EMBJ ahead by 31.0 points (+35.6% versus +4.6%). Note the risk asymmetry: EMBJ runs 8.9 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.
EMBJ vs HYG: side by side
| EMBJ (Embraer S.A.) | HYG (iShares iBoxx High Yield Corporate Bond ETF) | |
|---|---|---|
| 1-year return | +35.6% | +4.6% |
| 5-year return | +327.0% | +19.9% |
| Volatility (ann.) | 41.9% | 4.7% |
| Beta vs S&P 500 | 0.91 | 0.22 |
| Max drawdown (3Y) | -32.6% | -4.6% |
| Market cap | $13.4B | – |
| P/E (trailing) | 30.5 | – |
| Dividend yield | 0.95% | 5.94% |
| Expense ratio | – | 0.49% |
| Assets under management | – | $17.1B |
| Sector / category | US Listed | ETF · Bonds |
HYG is a High Yield Bond fund from iShares: $17.1B under management, a 0.49% expense ratio, a 5.94% trailing dividend yield.
Year-by-year returns
| Year | EMBJ | HYG |
|---|---|---|
| 2022 | -38.4% | -11.0% |
| 2023 | +68.8% | +11.5% |
| 2024 | +98.8% | +8.0% |
| 2025 | +75.7% | +8.6% |
| 2026 | +17.6% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EMBJ and HYG good diversifiers for each other?
Only partially. A correlation of 0.50 means EMBJ and HYG 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 EMBJ and HYG?
Using weekly returns as of 2026-08-27: 0.50 over 3 years, with 0.60 over the last year and 0.47 over 5 years.
Is HYG a good diversifier for EMBJ?
Only partially. A correlation of 0.50 means EMBJ and HYG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.50 mean?
A reading of 0.50 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/embj-vs-hyg.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/embj-vs-hyg/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EMBJ correlations · HYG correlations
