IWM vs KAI: Correlation
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and Kadant Inc (KAI) carry a correlation of 0.66, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and KAI?
Over the past 3 years, IWM and KAI moved with a correlation of 0.66, which is strong. Little has changed lately, as the 1-year reading of 0.56 lands near the 3-year figure. Over 5 years the correlation is 0.63, and the annualized covariance of weekly returns is 483.4 %².
By 3-year correlation, KAI places #62 of the 320 assets tracked against IWM. The last year tells two different stories: IWM led by 37.2 percentage points, +28.4% for IWM against -8.8% for KAI. One caveat on sizing: KAI 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.
IWM vs KAI: side by side
| IWM (iShares Russell 2000 ETF) | KAI (Kadant Inc) | |
|---|---|---|
| 1-year return | +28.4% | -8.8% |
| 5-year return | +41.5% | +49.3% |
| Volatility (ann.) | 19.8% | 37.1% |
| Beta vs S&P 500 | 1.06 | 1.34 |
| Max drawdown (3Y) | -27.5% | -41.2% |
| Market cap | – | $3.6B |
| P/E (trailing) | – | 32.9 |
| Dividend yield | 0.91% | 0.46% |
| Expense ratio | 0.19% | – |
| Assets under management | $80.1B | – |
| Sector / category | ETF · US Small & Mid Cap | US Listed |
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 | IWM | KAI |
|---|---|---|
| 2022 | -20.5% | -22.5% |
| 2023 | +16.8% | +58.7% |
| 2024 | +11.4% | +23.6% |
| 2025 | +12.7% | -17.0% |
| 2026 | +22.3% | +7.7% |
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 KAI at a 0.12% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are IWM and KAI good diversifiers for each other?
To a limited degree. At 0.66 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 IWM and KAI?
The IWM/KAI correlation stands at 0.66 on a 3-year window (1 year: 0.56, 5 years: 0.63), computed from weekly returns as of 2026-08-27.
Is KAI a good diversifier for IWM?
To a limited degree. At 0.66 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 0.66 mean?
A reading of 0.66 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/iwm-vs-kai.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iwm-vs-kai/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IWM correlations · KAI correlations
