III vs IWM: Correlation
How closely do Information Services Group, Inc. (III) and iShares Russell 2000 ETF (IWM) trade together? Their weekly returns over three years give a correlation of 0.53, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are III and IWM?
Across a 3-year window, the weekly returns of III and IWM correlate at 0.53, moderate. Recent behaviour matches the longer record: 0.54 over 1 year against 0.53 over 3. Stretching to 5 years gives 0.51, with an annualized covariance of 402.6 %².
In III's tracked universe of 16 assets, IWM sits right near the top at #1. Correlation aside, the last 12 months split them widely, with IWM ahead by 22.8 points (+5.6% versus +28.4%). Note the risk asymmetry: III runs 1.9 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
III vs IWM: side by side
| III (Information Services Group, Inc.) | IWM (iShares Russell 2000 ETF) | |
|---|---|---|
| 1-year return | +5.6% | +28.4% |
| 5-year return | -14.6% | +41.5% |
| Volatility (ann.) | 38.4% | 19.8% |
| Beta vs S&P 500 | 0.99 | 1.06 |
| Max drawdown (3Y) | -41.5% | -27.5% |
| Market cap | $0.2B | – |
| P/E (trailing) | 21.0 | – |
| Dividend yield | 3.63% | 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 | III | IWM |
|---|---|---|
| 2022 | -38.1% | -20.5% |
| 2023 | +6.2% | +16.8% |
| 2024 | -25.3% | +11.4% |
| 2025 | +79.8% | +12.7% |
| 2026 | -10.8% | +22.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are III and IWM good diversifiers for each other?
Only partially. A correlation of 0.53 means III and IWM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between III and IWM?
The III/IWM correlation stands at 0.53 on a 3-year window (1 year: 0.54, 5 years: 0.51), computed from weekly returns as of 2026-08-27.
Is IWM a good diversifier for III?
Only partially. A correlation of 0.53 means III and IWM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.53 mean?
A reading of 0.53 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/iii-vs-iwm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iii-vs-iwm/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: III correlations · IWM correlations
