IWM vs NOVT: Correlation
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and Novanta Inc. (NOVT) carry a correlation of 0.69, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and NOVT?
Over the past 3 years, IWM and NOVT moved with a correlation of 0.69, which is strong. Little has changed lately, as the 1-year reading of 0.59 lands near the 3-year figure. Over 5 years the correlation is 0.69, and the annualized covariance of weekly returns is 579.7 %².
Among the 320 assets we track against IWM, NOVT ranks #46 by 3-year correlation. The trailing year gives IWM the advantage: +28.4% versus +23.0%, a 5.4-point spread. Note the risk asymmetry: NOVT runs 2.1 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 NOVT: side by side
| IWM (iShares Russell 2000 ETF) | NOVT (Novanta Inc.) | |
|---|---|---|
| 1-year return | +28.4% | +23.0% |
| 5-year return | +41.5% | -4.1% |
| Volatility (ann.) | 19.8% | 42.1% |
| Beta vs S&P 500 | 1.06 | 1.79 |
| Max drawdown (3Y) | -27.5% | -46.7% |
| Market cap | – | $5.5B |
| P/E (trailing) | – | 91.6 |
| 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 | NOVT |
|---|---|---|
| 2022 | -20.5% | -22.9% |
| 2023 | +16.8% | +23.9% |
| 2024 | +11.4% | -9.3% |
| 2025 | +12.7% | -22.1% |
| 2026 | +22.3% | +21.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.16% of IWM is NOVT itself, so the fund partly moves with the stock by construction.
Are IWM and NOVT good diversifiers for each other?
To a limited degree. At 0.69 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 NOVT?
The IWM/NOVT correlation stands at 0.69 on a 3-year window (1 year: 0.59, 5 years: 0.69), computed from weekly returns as of 2026-08-27.
Is NOVT a good diversifier for IWM?
To a limited degree. At 0.69 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 0.69 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-novt.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iwm-vs-novt/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IWM correlations · NOVT correlations
