IBB vs WAT: Correlation
Measured on weekly returns over the past three years, iShares Biotechnology ETF (IBB) and Waters Corporation (WAT) carry a correlation of 0.53, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBB and WAT?
On 3 years of weekly data the IBB/WAT correlation comes out at 0.53, moderate. Recent behaviour matches the longer record: 0.53 over 1 year against 0.53 over 3. The 5-year figure is 0.53, and annualized covariance runs at 384.2 %².
Within IBB's tracked universe of 168 assets, WAT comes in at #80 by 3-year correlation. Over the last 12 months IBB came out ahead by 12.4 percentage points (+55.4% against +43.0%). The rolling one-year correlation moved between 0.43 and 0.68 over the past three years, a moderate range. Note the risk asymmetry: WAT runs 1.7 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 WAT: side by side
| IBB (iShares Biotechnology ETF) | WAT (Waters Corporation) | |
|---|---|---|
| 1-year return | +55.4% | +43.0% |
| 5-year return | +26.6% | +2.0% |
| Volatility (ann.) | 20.7% | 35.3% |
| Beta vs S&P 500 | 0.81 | 0.89 |
| Max drawdown (3Y) | -24.9% | -33.4% |
| Market cap | – | $41.4B |
| P/E (trailing) | – | 105.3 |
| Dividend yield | 0.22% | 0.00% |
| Expense ratio | 0.44% | – |
| Assets under management | $9.2B | – |
| Sector / category | ETF · Thematic | Health Care |
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 | WAT |
|---|---|---|
| 2022 | -13.7% | -8.1% |
| 2023 | +3.8% | -3.9% |
| 2024 | -2.4% | +12.7% |
| 2025 | +28.0% | +2.4% |
| 2026 | +27.4% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBB and WAT good diversifiers for each other?
Somewhat, no more. With 0.53 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IBB and WAT?
The IBB/WAT correlation stands at 0.53 on a 3-year window (1 year: 0.53, 5 years: 0.53), computed from weekly returns as of 2026-08-27.
Is WAT a good diversifier for IBB?
Somewhat, no more. With 0.53 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.53 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-wat.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ibb-vs-wat/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IBB correlations · WAT correlations
