ALGN vs IWM: Correlation
Align Technology (ALGN) and iShares Russell 2000 ETF (IWM) show a moderate relationship: their 3-year correlation of weekly returns is 0.53.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ALGN and IWM?
Across a 3-year window, the weekly returns of ALGN and IWM correlate at 0.53, moderate. The relationship has been stable: the 1-year correlation (0.61) sits close to the 3-year figure. Stretching to 5 years gives 0.60, with an annualized covariance of 469.6 %².
Among the 37 assets we track against ALGN, IWM ranks #11 by 3-year correlation. Correlation aside, the last 12 months split them widely, with IWM ahead by 16.5 points (+11.9% versus +28.4%). On a rolling one-year basis the correlation drifted between 0.34 and 0.65, a moderate band. Risk is not evenly split, since ALGN carries 2.2 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.
ALGN vs IWM: side by side
| ALGN (Align Technology) | IWM (iShares Russell 2000 ETF) | |
|---|---|---|
| 1-year return | +11.9% | +28.4% |
| 5-year return | -77.4% | +41.5% |
| Volatility (ann.) | 44.3% | 19.8% |
| Beta vs S&P 500 | 1.51 | 1.06 |
| Max drawdown (3Y) | -66.7% | -27.5% |
| Market cap | $11.3B | – |
| P/E (trailing) | 27.6 | – |
| Dividend yield | 0.00% | 0.91% |
| Expense ratio | – | 0.19% |
| Assets under management | – | $80.1B |
| Sector / category | Health Care | 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 | ALGN | IWM |
|---|---|---|
| 2022 | -67.9% | -20.5% |
| 2023 | +29.9% | +16.8% |
| 2024 | -23.9% | +11.4% |
| 2025 | -25.1% | +12.7% |
| 2026 | +1.7% | +22.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ALGN and IWM good diversifiers for each other?
To a limited degree. At 0.53 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 ALGN and IWM?
Using weekly returns as of 2026-08-27: 0.53 over 3 years, with 0.61 over the last year and 0.60 over 5 years.
Is IWM a good diversifier for ALGN?
To a limited degree. At 0.53 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 0.53 mean?
On the −1 to +1 scale, 0.53 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/algn-vs-iwm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/algn-vs-iwm/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ALGN correlations · IWM correlations
