IBB vs LGND: Correlation
How closely do iShares Biotechnology ETF (IBB) and Ligand Pharmaceuticals Incorporated (LGND) trade together? Their weekly returns over three years give a correlation of 0.48, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBB and LGND?
Over the past 3 years, IBB and LGND moved with a correlation of 0.48, which is moderate. Little has changed lately, as the 1-year reading of 0.45 lands near the 3-year figure. Over 5 years the correlation is 0.54, and the annualized covariance of weekly returns is 349.0 %².
Among the 168 assets we track against IBB, LGND ranks #107 by 3-year correlation. Correlation aside, the last 12 months split them widely, with LGND ahead by 23.4 points (+55.4% versus +78.8%). Risk is not evenly split, since LGND carries 1.7 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.
IBB vs LGND: side by side
| IBB (iShares Biotechnology ETF) | LGND (Ligand Pharmaceuticals Incorporated) | |
|---|---|---|
| 1-year return | +55.4% | +78.8% |
| 5-year return | +26.6% | +276.5% |
| Volatility (ann.) | 20.7% | 35.4% |
| Beta vs S&P 500 | 0.81 | 1.02 |
| Max drawdown (3Y) | -24.9% | -25.6% |
| Market cap | – | $5.7B |
| P/E (trailing) | – | 29.7 |
| Dividend yield | 0.22% | 0.00% |
| Expense ratio | 0.44% | – |
| Assets under management | $9.2B | – |
| Sector / category | ETF · Thematic | US Listed |
IBB is a Health fund from iShares: $9.2B under management, 235 holdings, a 0.44% expense ratio, a 0.22% trailing dividend yield.
Year-by-year returns
| Year | IBB | LGND |
|---|---|---|
| 2022 | -13.7% | -30.7% |
| 2023 | +3.8% | +6.9% |
| 2024 | -2.4% | +50.0% |
| 2025 | +28.0% | +76.5% |
| 2026 | +27.4% | +50.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBB and LGND good diversifiers for each other?
Reasonably. At 0.48, IBB and LGND keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between IBB and LGND?
The IBB/LGND correlation stands at 0.48 on a 3-year window (1 year: 0.45, 5 years: 0.54), computed from weekly returns as of 2026-08-27.
Is LGND a good diversifier for IBB?
Reasonably. At 0.48, IBB and LGND keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.48 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/ibb-vs-lgnd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ibb-vs-lgnd/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IBB correlations · LGND correlations
