HOOD vs IBKR: Correlation
Robinhood Markets (HOOD) and Interactive Brokers (IBKR) show a strong relationship: their 3-year correlation of weekly returns is 0.62.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HOOD and IBKR?
Across a 3-year window, the weekly returns of HOOD and IBKR correlate at 0.62, strong. The relationship has been stable: the 1-year correlation (0.68) sits close to the 3-year figure. Stretching to 5 years gives 0.58, with an annualized covariance of 1508.4 %².
By 3-year correlation, IBKR places #4 of the 39 assets tracked against HOOD. The last year tells two different stories: IBKR led by 50.4 percentage points, +6.6% for HOOD against +57.0% for IBKR. This link changes with the market regime, having swung between 0.24 and 0.77 on a rolling one-year basis. Risk is not evenly split, since HOOD carries 2.1 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.
HOOD vs IBKR: side by side
| HOOD (Robinhood Markets) | IBKR (Interactive Brokers) | |
|---|---|---|
| 1-year return | +6.6% | +57.0% |
| 5-year return | +151.5% | +516.0% |
| Volatility (ann.) | 71.4% | 33.9% |
| Beta vs S&P 500 | 2.88 | 1.37 |
| Max drawdown (3Y) | -57.3% | -38.7% |
| Market cap | $98.7B | $164.5B |
| P/E (trailing) | 48.1 | 38.5 |
| Dividend yield | 0.00% | 0.34% |
| Sector / category | Financials | Financials |
Year-by-year returns
| Year | HOOD | IBKR |
|---|---|---|
| 2022 | -54.2% | -8.4% |
| 2023 | +56.5% | +15.1% |
| 2024 | +192.5% | +114.4% |
| 2025 | +203.5% | +46.4% |
| 2026 | -3.0% | +50.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HOOD and IBKR good diversifiers for each other?
Only partially. A correlation of 0.62 means HOOD and IBKR 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 HOOD and IBKR?
The HOOD/IBKR correlation stands at 0.62 on a 3-year window (1 year: 0.68, 5 years: 0.58), computed from weekly returns as of 2026-08-27.
Is IBKR a good diversifier for HOOD?
Only partially. A correlation of 0.62 means HOOD and IBKR share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.62 mean?
On the −1 to +1 scale, 0.62 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: HOOD correlations · IBKR correlations
