LQD vs NBH: Correlation
How closely do iShares iBoxx Investment Grade Corporate Bond ETF (LQD) and Neuberger Municipal Fund Inc. (NBH) trade together? Their weekly returns over three years give a correlation of 0.71, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LQD and NBH?
Over the past 3 years, LQD and NBH moved with a correlation of 0.71, which is strong. The relationship has been stable: the 1-year correlation (0.61) sits close to the 3-year figure. Over 5 years the correlation is 0.56, and the annualized covariance of weekly returns is 58.9 %².
By 3-year correlation, NBH places #12 of the 33 assets tracked against LQD. On 12-month performance NBH holds a 8.7-point edge, +1.5% against +10.2%. Note the risk asymmetry: NBH runs 1.6 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.
LQD vs NBH: side by side
| LQD (iShares iBoxx Investment Grade Corporate Bond ETF) | NBH (Neuberger Municipal Fund Inc.) | |
|---|---|---|
| 1-year return | +1.5% | +10.2% |
| 5-year return | -4.1% | -21.0% |
| Volatility (ann.) | 7.3% | 11.4% |
| Beta vs S&P 500 | 0.15 | 0.30 |
| Max drawdown (3Y) | -6.7% | -11.1% |
| Market cap | – | – |
| P/E (trailing) | – | 14.6 |
| Dividend yield | 4.66% | 6.35% |
| Expense ratio | 0.14% | – |
| Assets under management | $33.0B | – |
| Sector / category | ETF · Bonds | US Listed |
LQD, iShares's Corporate Bond fund, carries $33.0B under management, a 0.14% expense ratio, a 4.66% trailing dividend yield.
Year-by-year returns
| Year | LQD | NBH |
|---|---|---|
| 2022 | -17.9% | -28.2% |
| 2023 | +9.4% | +4.0% |
| 2024 | +0.9% | +5.3% |
| 2025 | +7.9% | +4.2% |
| 2026 | -0.5% | +4.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LQD and NBH good diversifiers for each other?
Only partially. A correlation of 0.71 means LQD and NBH 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 LQD and NBH?
The LQD/NBH correlation stands at 0.71 on a 3-year window (1 year: 0.61, 5 years: 0.56), computed from weekly returns as of 2026-08-27.
Is NBH a good diversifier for LQD?
Only partially. A correlation of 0.71 means LQD and NBH share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.71 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/lqd-vs-nbh.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/lqd-vs-nbh/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: LQD correlations · NBH correlations
