IWM vs LOCO: Correlation
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and El Pollo Loco Holdings, Inc. (LOCO) carry a correlation of 0.47, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and LOCO?
Across a 3-year window, the weekly returns of IWM and LOCO correlate at 0.47, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.21 versus 0.47 over 3 years. Stretching to 5 years gives 0.46, with an annualized covariance of 315.4 %².
Among the 320 assets we track against IWM, LOCO ranks #265 by 3-year correlation. The trailing year gives LOCO the advantage: +28.4% versus +42.3%, a 13.9-point spread. One caveat on sizing: LOCO 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 LOCO: side by side
| IWM (iShares Russell 2000 ETF) | LOCO (El Pollo Loco Holdings, Inc.) | |
|---|---|---|
| 1-year return | +28.4% | +42.3% |
| 5-year return | +41.5% | -3.0% |
| Volatility (ann.) | 19.8% | 33.9% |
| Beta vs S&P 500 | 1.06 | 0.82 |
| Max drawdown (3Y) | -27.5% | -35.9% |
| Market cap | – | $0.5B |
| P/E (trailing) | – | 13.3 |
| 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, 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 | LOCO |
|---|---|---|
| 2022 | -20.5% | -19.0% |
| 2023 | +16.8% | -11.4% |
| 2024 | +11.4% | +30.8% |
| 2025 | +12.7% | -9.4% |
| 2026 | +22.3% | +45.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and LOCO good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.47 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between IWM and LOCO?
Using weekly returns as of 2026-08-27: 0.47 over 3 years, with 0.21 over the last year and 0.46 over 5 years.
Is LOCO a good diversifier for IWM?
Yes, to a useful degree: a correlation of 0.47 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.47 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-loco.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iwm-vs-loco/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IWM correlations · LOCO correlations
