LQD vs RKT: Correlation
How closely do iShares iBoxx Investment Grade Corporate Bond ETF (LQD) and Rocket Companies, Inc. (RKT) trade together? Their weekly returns over three years give a correlation of 0.66, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LQD and RKT?
Across a 3-year window, the weekly returns of LQD and RKT correlate at 0.66, strong. Little has changed lately, as the 1-year reading of 0.66 lands near the 3-year figure. Stretching to 5 years gives 0.64, with an annualized covariance of 266.7 %².
Within LQD's tracked universe of 33 assets, RKT comes in at #16 by 3-year correlation. Correlation aside, the last 12 months split them widely, with LQD ahead by 22.7 points (+1.5% versus -21.2%). One caveat on sizing: RKT is 7.6 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 RKT: side by side
| LQD (iShares iBoxx Investment Grade Corporate Bond ETF) | RKT (Rocket Companies, Inc.) | |
|---|---|---|
| 1-year return | +1.5% | -21.2% |
| 5-year return | -4.1% | -7.5% |
| Volatility (ann.) | 7.3% | 55.4% |
| Beta vs S&P 500 | 0.15 | 1.02 |
| Max drawdown (3Y) | -6.7% | -50.6% |
| Market cap | – | $40.3B |
| P/E (trailing) | – | – |
| Dividend yield | 4.66% | 0.00% |
| Expense ratio | 0.14% | – |
| Assets under management | $33.0B | – |
| Sector / category | ETF · Bonds | US Listed |
LQD is a Corporate Bond fund from iShares: $33.0B under management, a 0.14% expense ratio, a 4.66% trailing dividend yield.
Year-by-year returns
| Year | LQD | RKT |
|---|---|---|
| 2022 | -17.9% | -46.2% |
| 2023 | +9.4% | +106.9% |
| 2024 | +0.9% | -22.2% |
| 2025 | +7.9% | +81.7% |
| 2026 | -0.5% | -26.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LQD and RKT good diversifiers for each other?
To a limited degree. At 0.66 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 LQD and RKT?
As of 2026-08-27, the correlation of weekly returns between LQD and RKT is 0.66 over 3 years, 0.66 over 1 year and 0.64 over 5 years.
Is RKT a good diversifier for LQD?
To a limited degree. At 0.66 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 0.66 mean?
On the −1 to +1 scale, 0.66 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/lqd-vs-rkt.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/lqd-vs-rkt/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: LQD correlations · RKT correlations
