LQD vs ULTA: Correlation
How closely do iShares iBoxx Investment Grade Corporate Bond ETF (LQD) and Ulta Beauty (ULTA) trade together? Their weekly returns over three years give a correlation of 0.40, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LQD and ULTA?
Over the past 3 years, LQD and ULTA moved with a correlation of 0.40, which is moderate. The relationship has been stable: the 1-year correlation (0.46) sits close to the 3-year figure. Over 5 years the correlation is 0.30, and the annualized covariance of weekly returns is 102.3 %².
Within LQD's tracked universe of 33 assets, ULTA comes in at #20 by 3-year correlation. Their 12-month results are close: +1.5% for LQD against +1.2% for ULTA. The rolling one-year correlation moved between 0.13 and 0.48 over the past three years, a moderate range. Risk is not evenly split, since ULTA carries 4.8 times the volatility of the other side.
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 ULTA: side by side
| LQD (iShares iBoxx Investment Grade Corporate Bond ETF) | ULTA (Ulta Beauty) | |
|---|---|---|
| 1-year return | +1.5% | +1.2% |
| 5-year return | -4.1% | +41.0% |
| Volatility (ann.) | 7.3% | 35.3% |
| Beta vs S&P 500 | 0.15 | 0.75 |
| Max drawdown (3Y) | -6.7% | -44.6% |
| Market cap | – | $23.2B |
| P/E (trailing) | – | 20.4 |
| Dividend yield | 4.66% | 0.00% |
| Expense ratio | 0.14% | – |
| Assets under management | $33.0B | – |
| Sector / category | ETF · Bonds | Consumer Discretionary |
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 | ULTA |
|---|---|---|
| 2022 | -17.9% | +13.8% |
| 2023 | +9.4% | +4.5% |
| 2024 | +0.9% | -11.2% |
| 2025 | +7.9% | +39.1% |
| 2026 | -0.5% | -10.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LQD and ULTA good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between LQD and ULTA?
Using weekly returns as of 2026-08-27: 0.40 over 3 years, with 0.46 over the last year and 0.30 over 5 years.
Is ULTA a good diversifier for LQD?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.40 mean?
On the −1 to +1 scale, 0.40 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-ulta.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/lqd-vs-ulta/)
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Related comparisons
Hubs: LQD correlations · ULTA correlations
