IBB vs TEM: Correlation
How closely do iShares Biotechnology ETF (IBB) and Tempus AI, Inc. (TEM) trade together? Their weekly returns over three years give a correlation of 0.53, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBB and TEM?
Over the past 3 years, IBB and TEM moved with a correlation of 0.53, which is moderate. Lately the two have moved closer together, with the 1-year correlation at 0.64 versus 0.53 over 3 years. Over 5 years the correlation is n/a, and the annualized covariance of weekly returns is 1206.1 %².
Within IBB's tracked universe of 168 assets, TEM comes in at #79 by 3-year correlation. Correlation aside, the last 12 months split them widely, with IBB ahead by 58.9 points (+55.4% versus -3.5%). Note the risk asymmetry: TEM runs 5.1 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.
IBB vs TEM: side by side
| IBB (iShares Biotechnology ETF) | TEM (Tempus AI, Inc.) | |
|---|---|---|
| 1-year return | +55.4% | -3.5% |
| 5-year return | +26.6% | n/a |
| Volatility (ann.) | 20.7% | 104.7% |
| Beta vs S&P 500 | 0.81 | 3.25 |
| Max drawdown (3Y) | -24.9% | -59.8% |
| Market cap | – | $12.8B |
| 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, iShares's Health fund, carries $9.2B under management, 235 holdings, a 0.44% expense ratio, a 0.22% trailing dividend yield.
Year-by-year returns
| Year | IBB | TEM |
|---|---|---|
| 2022 | -13.7% | – |
| 2023 | +3.8% | – |
| 2024 | -2.4% | – |
| 2025 | +28.0% | +74.9% |
| 2026 | +27.4% | +19.7% |
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 TEM at a 0.5% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are IBB and TEM good diversifiers for each other?
To a limited degree. At 0.53 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between IBB and TEM?
The IBB/TEM correlation stands at 0.53 on a 3-year window (1 year: 0.64, 5 years: n/a), computed from weekly returns as of 2026-08-27.
Is TEM a good diversifier for IBB?
To a limited degree. At 0.53 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.53 mean?
On the −1 to +1 scale, 0.53 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ibb-vs-tem.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ibb-vs-tem/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IBB correlations · TEM correlations
