CMC vs IWM: Correlation
How closely do Commercial Metals Company (CMC) and iShares Russell 2000 ETF (IWM) trade together? Their weekly returns over three years give a correlation of 0.73, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CMC and IWM?
Over the past 3 years, CMC and IWM moved with a correlation of 0.73, which is strong. The link has loosened recently: the 1-year correlation (0.55) runs below the 3-year figure (0.73). Over 5 years the correlation is 0.69, and the annualized covariance of weekly returns is 481.6 %².
Among the 19 assets we track against CMC, IWM ranks #5 by 3-year correlation. The trailing year gives IWM the advantage: +22.0% versus +28.4%, a 6.4-point spread. One caveat on sizing: CMC is 1.7 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.
CMC vs IWM: side by side
| CMC (Commercial Metals Company) | IWM (iShares Russell 2000 ETF) | |
|---|---|---|
| 1-year return | +22.0% | +28.4% |
| 5-year return | +119.5% | +41.5% |
| Volatility (ann.) | 33.3% | 19.8% |
| Beta vs S&P 500 | 1.26 | 1.06 |
| Max drawdown (3Y) | -37.6% | -27.5% |
| Market cap | – | – |
| P/E (trailing) | 12.9 | – |
| Dividend yield | 1.08% | 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 | CMC | IWM |
|---|---|---|
| 2022 | +35.0% | -20.5% |
| 2023 | +5.0% | +16.8% |
| 2024 | +0.4% | +11.4% |
| 2025 | +41.5% | +12.7% |
| 2026 | +0.2% | +22.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.24% of IWM is CMC itself, so the fund partly moves with the stock by construction.
Are CMC and IWM good diversifiers for each other?
Somewhat, no more. With 0.73 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between CMC and IWM?
As of 2026-08-27, the correlation of weekly returns between CMC and IWM is 0.73 over 3 years, 0.55 over 1 year and 0.69 over 5 years.
Is IWM a good diversifier for CMC?
Somewhat, no more. With 0.73 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.73 mean?
A reading of 0.73 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/cmc-vs-iwm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/cmc-vs-iwm/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: CMC correlations · IWM correlations
