AIR vs IWM: Correlation
AAR Corp. (AIR) and iShares Russell 2000 ETF (IWM) show a moderate relationship: their 3-year correlation of weekly returns is 0.52.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AIR and IWM?
On 3 years of weekly data the AIR/IWM correlation comes out at 0.52, moderate. Recent behaviour matches the longer record: 0.60 over 1 year against 0.52 over 3. The 5-year figure is 0.59, and annualized covariance runs at 384.3 %².
Few assets follow AIR as closely as IWM, which ranks #3 of 10 tracked partners. Correlation aside, the last 12 months split them widely, with AIR ahead by 50.8 points (+79.2% versus +28.4%). One caveat on sizing: AIR is 1.9 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.
AIR vs IWM: side by side
| AIR (AAR Corp.) | IWM (iShares Russell 2000 ETF) | |
|---|---|---|
| 1-year return | +79.2% | +28.4% |
| 5-year return | +302.1% | +41.5% |
| Volatility (ann.) | 37.3% | 19.8% |
| Beta vs S&P 500 | 1.06 | 1.06 |
| Max drawdown (3Y) | -35.7% | -27.5% |
| Market cap | $5.5B | – |
| P/E (trailing) | 28.0 | – |
| Dividend yield | 0.00% | 0.91% |
| Expense ratio | – | 0.19% |
| Assets under management | – | $80.1B |
| Sector / category | US Listed | ETF · US Small & Mid Cap |
IWM, iShares's Small Blend fund, carries $80.1B under management, 1757 holdings, a 0.19% expense ratio, a 0.91% trailing dividend yield.
Year-by-year returns
| Year | AIR | IWM |
|---|---|---|
| 2022 | +15.0% | -20.5% |
| 2023 | +39.0% | +16.8% |
| 2024 | -1.8% | +11.4% |
| 2025 | +35.1% | +12.7% |
| 2026 | +64.2% | +22.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that IWM holds AIR at a 0.17% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are AIR and IWM good diversifiers for each other?
To a limited degree. At 0.52 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 AIR and IWM?
Using weekly returns as of 2026-08-27: 0.52 over 3 years, with 0.60 over the last year and 0.59 over 5 years.
Is IWM a good diversifier for AIR?
To a limited degree. At 0.52 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 0.52 mean?
A reading of 0.52 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/air-vs-iwm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/air-vs-iwm/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AIR correlations · IWM correlations
