Pair · Stocks & ETFs
HYG vs LQD
As of 22 Oct 2026, High Yield Corporate Bond ETF (HYG) and Investment Grade Corporate Bond ETF (LQD) have a 120-day daily-return correlation of 0.82 — very strong positive. Their prices did not pass the Engle–Granger cointegration test at the 5% level, so their ratio hasn’t shown a stable tether over this window.
Last updated 22 Oct 2026 · data through the 22 Oct 2026 UTC daily candle
The working detail for HYG/LQD
- Hedge ratio and mean-reversion half-life
- Live spread z-score with a ±2σ band — how stretched the pair is today
- Rolling history of the relationship, and the days it breaks down
- Pass/fail gates and a composite score across every tracked pair
Common questions
Are HYG and LQD correlated?
As of 22 Oct 2026, the correlation between HYG and LQD daily returns over the last 120 days is 0.82 (very strong positive). Near 1 means they usually move the same way on the same day; near 0, independently; below 0, in opposite directions.
Are HYG and LQD cointegrated?
Not right now. As of 22 Oct 2026, their prices did not pass the Engle–Granger cointegration test at the 5% level over the last 120 days. The test is re-run every day on fresh prices, so the answer can change.
What’s the difference between correlation and cointegration?
Correlation measures whether two assets’ daily returns move together. Cointegration asks something stronger: whether the gap between their prices — their ratio — is tethered and tends to pull back toward its usual level. Two assets can be highly correlated yet drift apart for months; that is correlation without cointegration.