IWM vs LGND: Correlation
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and Ligand Pharmaceuticals Incorporated (LGND) carry a correlation of 0.52, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and LGND?
Over the past 3 years, IWM and LGND moved with a correlation of 0.52, which is moderate. The past 12 months show a weaker link (0.37) than the 3-year average (0.52). Over 5 years the correlation is 0.54, and the annualized covariance of weekly returns is 366.1 %².
By 3-year correlation, LGND places #208 of the 320 assets tracked against IWM. Correlation aside, the last 12 months split them widely, with LGND ahead by 50.4 points (+28.4% versus +78.8%). Risk is not evenly split, since LGND carries 1.8 times the volatility of the other side.
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 LGND: side by side
| IWM (iShares Russell 2000 ETF) | LGND (Ligand Pharmaceuticals Incorporated) | |
|---|---|---|
| 1-year return | +28.4% | +78.8% |
| 5-year return | +41.5% | +276.5% |
| Volatility (ann.) | 19.8% | 35.4% |
| Beta vs S&P 500 | 1.06 | 1.02 |
| Max drawdown (3Y) | -27.5% | -25.6% |
| Market cap | – | $5.7B |
| P/E (trailing) | – | 29.7 |
| Dividend yield | 0.91% | 0.00% |
| Expense ratio | 0.19% | – |
| Assets under management | $80.1B | – |
| Sector / category | ETF · US Small & Mid Cap | US Listed |
On the fund side, IWM sits in the Small Blend category at iShares, with $80.1B under management, 1757 holdings, a 0.19% expense ratio, a 0.91% trailing dividend yield.
Year-by-year returns
| Year | IWM | LGND |
|---|---|---|
| 2022 | -20.5% | -30.7% |
| 2023 | +16.8% | +6.9% |
| 2024 | +11.4% | +50.0% |
| 2025 | +12.7% | +76.5% |
| 2026 | +22.3% | +50.5% |
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 LGND at a 0.18% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are IWM and LGND good diversifiers for each other?
To a limited degree. At 0.52 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 LGND?
As of 2026-08-27, the correlation of weekly returns between IWM and LGND is 0.52 over 3 years, 0.37 over 1 year and 0.54 over 5 years.
Is LGND a good diversifier for IWM?
To a limited degree. At 0.52 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 0.52 mean?
On the −1 to +1 scale, 0.52 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-lgnd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iwm-vs-lgnd/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IWM correlations · LGND correlations
