IWM vs NDSN: Correlation
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and Nordson Corporation (NDSN) carry a correlation of 0.68, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and NDSN?
Over the past 3 years, IWM and NDSN moved with a correlation of 0.68, which is strong. The link has loosened recently: the 1-year correlation (0.56) runs below the 3-year figure (0.68). Over 5 years the correlation is 0.70, and the annualized covariance of weekly returns is 332.2 %².
By 3-year correlation, NDSN places #54 of the 320 assets tracked against IWM. Their recent paths diverged sharply: over the last 12 months NDSN outperformed by 20.1 percentage points (+28.4% for IWM against +48.5% for NDSN). The rolling one-year correlation stayed in a tight band between 0.62 and 0.81 over the past three years, which points to a structural rather than episodic relationship.
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 NDSN: side by side
| IWM (iShares Russell 2000 ETF) | NDSN (Nordson Corporation) | |
|---|---|---|
| 1-year return | +28.4% | +48.5% |
| 5-year return | +41.5% | +46.5% |
| Volatility (ann.) | 19.8% | 24.7% |
| Beta vs S&P 500 | 1.06 | 0.97 |
| Max drawdown (3Y) | -27.5% | -39.1% |
| Market cap | – | $18.4B |
| P/E (trailing) | – | 33.5 |
| Dividend yield | 0.91% | 0.98% |
| Expense ratio | 0.19% | – |
| Assets under management | $80.1B | – |
| Sector / category | ETF · US Small & Mid Cap | Industrials |
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 | NDSN |
|---|---|---|
| 2022 | -20.5% | -5.9% |
| 2023 | +16.8% | +12.4% |
| 2024 | +11.4% | -20.1% |
| 2025 | +12.7% | +17.0% |
| 2026 | +22.3% | +38.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and NDSN good diversifiers for each other?
Only partially. A correlation of 0.68 means IWM and NDSN share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between IWM and NDSN?
Using weekly returns as of 2026-08-27: 0.68 over 3 years, with 0.56 over the last year and 0.70 over 5 years.
Is NDSN a good diversifier for IWM?
Only partially. A correlation of 0.68 means IWM and NDSN share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.68 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-ndsn.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iwm-vs-ndsn/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IWM correlations · NDSN correlations
