IWM vs LOVE: Correlation
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and The Lovesac Company (LOVE) carry a correlation of 0.60, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and LOVE?
Over the past 3 years, IWM and LOVE moved with a correlation of 0.60, which is strong. The relationship has been stable: the 1-year correlation (0.57) sits close to the 3-year figure. Over 5 years the correlation is 0.59, and the annualized covariance of weekly returns is 759.6 %².
Among the 320 assets we track against IWM, LOVE ranks #120 by 3-year correlation. The last year tells two different stories: IWM led by 43.6 percentage points, +28.4% for IWM against -15.2% for LOVE. One caveat on sizing: LOVE is 3.2 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 LOVE: side by side
| IWM (iShares Russell 2000 ETF) | LOVE (The Lovesac Company) | |
|---|---|---|
| 1-year return | +28.4% | -15.2% |
| 5-year return | +41.5% | -71.8% |
| Volatility (ann.) | 19.8% | 64.0% |
| Beta vs S&P 500 | 1.06 | 1.85 |
| Max drawdown (3Y) | -27.5% | -72.7% |
| Market cap | – | $0.2B |
| P/E (trailing) | – | 64.3 |
| 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 | LOVE |
|---|---|---|
| 2022 | -20.5% | -66.8% |
| 2023 | +16.8% | +16.1% |
| 2024 | +11.4% | -7.4% |
| 2025 | +12.7% | -37.7% |
| 2026 | +22.3% | +8.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and LOVE good diversifiers for each other?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IWM and LOVE?
The IWM/LOVE correlation stands at 0.60 on a 3-year window (1 year: 0.57, 5 years: 0.59), computed from weekly returns as of 2026-08-27.
Is LOVE a good diversifier for IWM?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.60 mean?
On the −1 to +1 scale, 0.60 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-love.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/iwm-vs-love/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IWM correlations · LOVE correlations
