IBB vs RLAY: Correlation
Measured on weekly returns over the past three years, iShares Biotechnology ETF (IBB) and Relay Therapeutics, Inc. (RLAY) carry a correlation of 0.62, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBB and RLAY?
Over the past 3 years, IBB and RLAY moved with a correlation of 0.62, which is strong. The link has loosened recently: the 1-year correlation (0.46) runs below the 3-year figure (0.62). Over 5 years the correlation is 0.59, and the annualized covariance of weekly returns is 919.0 %².
Among the 168 assets we track against IBB, RLAY ranks #22 by 3-year correlation. Correlation aside, the last 12 months split them widely, with RLAY ahead by 388.6 points (+55.4% versus +444.0%). Risk is not evenly split, since RLAY carries 3.4 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 RLAY: side by side
| IBB (iShares Biotechnology ETF) | RLAY (Relay Therapeutics, Inc.) | |
|---|---|---|
| 1-year return | +55.4% | +444.0% |
| 5-year return | +26.6% | -35.3% |
| Volatility (ann.) | 20.7% | 71.3% |
| Beta vs S&P 500 | 0.81 | 2.17 |
| Max drawdown (3Y) | -24.9% | -83.4% |
| Market cap | – | $4.3B |
| P/E (trailing) | – | – |
| 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 | RLAY |
|---|---|---|
| 2022 | -13.7% | -51.4% |
| 2023 | +3.8% | -26.3% |
| 2024 | -2.4% | -62.6% |
| 2025 | +28.0% | +105.3% |
| 2026 | +27.4% | +129.6% |
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 RLAY at a 0.22% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are IBB and RLAY good diversifiers for each other?
Only partially. A correlation of 0.62 means IBB and RLAY 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 IBB and RLAY?
As of 2026-08-27, the correlation of weekly returns between IBB and RLAY is 0.62 over 3 years, 0.46 over 1 year and 0.59 over 5 years.
Is RLAY a good diversifier for IBB?
Only partially. A correlation of 0.62 means IBB and RLAY 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?
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.
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Hubs: IBB correlations · RLAY correlations
