IWM vs KWR: Correlation
How closely do iShares Russell 2000 ETF (IWM) and Quaker Houghton (KWR) trade together? Their weekly returns over three years give a correlation of 0.67, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and KWR?
On 3 years of weekly data the IWM/KWR correlation comes out at 0.67, strong. Recent behaviour matches the longer record: 0.63 over 1 year against 0.67 over 3. The 5-year figure is 0.70, and annualized covariance runs at 457.1 %².
By 3-year correlation, KWR places #57 of the 320 assets tracked against IWM. The trailing year gives IWM the advantage: +28.4% versus +15.1%, a 13.3-point spread. One caveat on sizing: KWR 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.
IWM vs KWR: side by side
| IWM (iShares Russell 2000 ETF) | KWR (Quaker Houghton) | |
|---|---|---|
| 1-year return | +28.4% | +15.1% |
| 5-year return | +41.5% | -32.5% |
| Volatility (ann.) | 19.8% | 34.3% |
| Beta vs S&P 500 | 1.06 | 1.16 |
| Max drawdown (3Y) | -27.5% | -55.3% |
| Market cap | – | $2.8B |
| P/E (trailing) | – | 29.4 |
| Dividend yield | 0.91% | 1.24% |
| 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 | KWR |
|---|---|---|
| 2022 | -20.5% | -26.9% |
| 2023 | +16.8% | +29.1% |
| 2024 | +11.4% | -33.4% |
| 2025 | +12.7% | -0.8% |
| 2026 | +22.3% | +20.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.07% of IWM is KWR itself, so the fund partly moves with the stock by construction.
Are IWM and KWR good diversifiers for each other?
To a limited degree. At 0.67 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 KWR?
Using weekly returns as of 2026-08-27: 0.67 over 3 years, with 0.63 over the last year and 0.70 over 5 years.
Is KWR a good diversifier for IWM?
To a limited degree. At 0.67 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 0.67 mean?
On the −1 to +1 scale, 0.67 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iwm-vs-kwr.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/iwm-vs-kwr/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IWM correlations · KWR correlations
