IWM vs KMX: Correlation
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and CarMax Inc (KMX) carry a correlation of 0.49, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and KMX?
Across a 3-year window, the weekly returns of IWM and KMX correlate at 0.49, moderate. Recent behaviour matches the longer record: 0.41 over 1 year against 0.49 over 3. Stretching to 5 years gives 0.53, with an annualized covariance of 410.9 %².
Within IWM's tracked universe of 320 assets, KMX comes in at #244 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months IWM outperformed by 27.5 percentage points (+28.4% for IWM against +0.9% for KMX). One caveat on sizing: KMX is 2.1 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 KMX: side by side
| IWM (iShares Russell 2000 ETF) | KMX (CarMax Inc) | |
|---|---|---|
| 1-year return | +28.4% | +0.9% |
| 5-year return | +41.5% | -50.5% |
| Volatility (ann.) | 19.8% | 41.9% |
| Beta vs S&P 500 | 1.06 | 0.94 |
| Max drawdown (3Y) | -27.5% | -65.4% |
| Market cap | – | – |
| P/E (trailing) | – | 38.9 |
| Dividend yield | 0.91% | 0.00% |
| Expense ratio | 0.19% | – |
| Assets under management | $80.1B | – |
| Sector / category | ETF · US Small & Mid Cap | US Listed |
IWM is a Small Blend fund from iShares: $80.1B under management, 1757 holdings, a 0.19% expense ratio, a 0.91% trailing dividend yield.
Year-by-year returns
| Year | IWM | KMX |
|---|---|---|
| 2022 | -20.5% | -53.2% |
| 2023 | +16.8% | +26.0% |
| 2024 | +11.4% | +6.5% |
| 2025 | +12.7% | -52.7% |
| 2026 | +22.3% | +62.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and KMX good diversifiers for each other?
Reasonably. At 0.49, IWM and KMX keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between IWM and KMX?
As of 2026-08-27, the correlation of weekly returns between IWM and KMX is 0.49 over 3 years, 0.41 over 1 year and 0.53 over 5 years.
Is KMX a good diversifier for IWM?
Reasonably. At 0.49, IWM and KMX keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.49 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iwm-vs-kmx.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iwm-vs-kmx/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IWM correlations · KMX correlations
