IBB vs VELO: Correlation
How closely do iShares Biotechnology ETF (IBB) and Velo3D, Inc. (VELO) trade together? Their weekly returns over three years give a correlation of -0.18, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBB and VELO?
Over the past 3 years, IBB and VELO moved with a correlation of -0.18, which is negative, meaning they tend to move in opposite directions. The link has tightened recently: the 1-year correlation (-0.07) runs above the 3-year figure (-0.18). Over 5 years the correlation is -0.05, and the annualized covariance of weekly returns is -921.5 %².
Among the 168 assets we track against IBB, VELO ranks #161 by 3-year correlation. The last year tells two different stories: VELO led by 126.5 percentage points, +55.4% for IBB against +181.9% for VELO. Note the risk asymmetry: VELO runs 12.0 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 VELO: side by side
| IBB (iShares Biotechnology ETF) | VELO (Velo3D, Inc.) | |
|---|---|---|
| 1-year return | +55.4% | +181.9% |
| 5-year return | +26.6% | -99.8% |
| Volatility (ann.) | 20.7% | 249.0% |
| Beta vs S&P 500 | 0.81 | -2.66 |
| Max drawdown (3Y) | -24.9% | -99.8% |
| Market cap | – | $0.4B |
| P/E (trailing) | – | – |
| Dividend yield | 0.22% | 0.00% |
| Expense ratio | 0.44% | – |
| Assets under management | $9.2B | – |
| Sector / category | ETF · Thematic | US Listed |
On the fund side, IBB sits in the Health category at iShares, with $9.2B under management, 235 holdings, a 0.44% expense ratio, a 0.22% trailing dividend yield.
Year-by-year returns
| Year | IBB | VELO |
|---|---|---|
| 2022 | -13.7% | -77.1% |
| 2023 | +3.8% | -77.8% |
| 2024 | -2.4% | -95.2% |
| 2025 | +28.0% | +35.7% |
| 2026 | +27.4% | -6.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBB and VELO good diversifiers for each other?
By historical standards, yes. A correlation of -0.18 means the two rarely move for the same reasons.
FAQ
What is the correlation between IBB and VELO?
The IBB/VELO correlation stands at -0.18 on a 3-year window (1 year: -0.07, 5 years: -0.05), computed from weekly returns as of 2026-08-27.
Is VELO a good diversifier for IBB?
By historical standards, yes. A correlation of -0.18 means the two rarely move for the same reasons.
What does a correlation of -0.18 mean?
On the −1 to +1 scale, -0.18 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-velo.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ibb-vs-velo/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IBB correlations · VELO correlations
