ARLO vs IWM: Correlation
How closely do Arlo Technologies, Inc. (ARLO) and iShares Russell 2000 ETF (IWM) trade together? Their weekly returns over three years give a correlation of 0.50, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARLO and IWM?
On 3 years of weekly data the ARLO/IWM correlation comes out at 0.50, moderate. The relationship has been stable: the 1-year correlation (0.40) sits close to the 3-year figure. The 5-year figure is 0.36, and annualized covariance runs at 613.3 %².
Few assets follow ARLO as closely as IWM, which ranks #2 of 13 tracked partners. Their recent paths diverged sharply: over the last 12 months IWM outperformed by 54.1 percentage points (-25.7% for ARLO against +28.4% for IWM). Risk is not evenly split, since ARLO carries 3.1 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.
ARLO vs IWM: side by side
| ARLO (Arlo Technologies, Inc.) | IWM (iShares Russell 2000 ETF) | |
|---|---|---|
| 1-year return | -25.7% | +28.4% |
| 5-year return | +113.6% | +41.5% |
| Volatility (ann.) | 61.4% | 19.8% |
| Beta vs S&P 500 | 1.84 | 1.06 |
| Max drawdown (3Y) | -50.8% | -27.5% |
| Market cap | $1.4B | – |
| P/E (trailing) | 46.7 | – |
| 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 | ARLO | IWM |
|---|---|---|
| 2022 | -66.5% | -20.5% |
| 2023 | +171.2% | +16.8% |
| 2024 | +17.5% | +11.4% |
| 2025 | +25.0% | +12.7% |
| 2026 | -6.6% | +22.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARLO and IWM good diversifiers for each other?
To a limited degree. At 0.50 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 ARLO and IWM?
Using weekly returns as of 2026-08-27: 0.50 over 3 years, with 0.40 over the last year and 0.36 over 5 years.
Is IWM a good diversifier for ARLO?
To a limited degree. At 0.50 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 0.50 mean?
A reading of 0.50 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/arlo-vs-iwm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/arlo-vs-iwm/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ARLO correlations · IWM correlations
