IWM vs NXDR: Correlation
How closely do iShares Russell 2000 ETF (IWM) and Nextdoor Holdings, Inc. (NXDR) trade together? Their weekly returns over three years give a correlation of 0.53, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and NXDR?
Over the past 3 years, IWM and NXDR moved with a correlation of 0.53, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.38 versus 0.53 over 3 years. Over 5 years the correlation is 0.51, and the annualized covariance of weekly returns is 562.5 %².
By 3-year correlation, NXDR places #194 of the 320 assets tracked against IWM. Correlation aside, the last 12 months split them widely, with IWM ahead by 18.4 points (+28.4% versus +10.0%). Note the risk asymmetry: NXDR runs 2.7 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 NXDR: side by side
| IWM (iShares Russell 2000 ETF) | NXDR (Nextdoor Holdings, Inc.) | |
|---|---|---|
| 1-year return | +28.4% | +10.0% |
| 5-year return | +41.5% | -82.2% |
| Volatility (ann.) | 19.8% | 54.0% |
| Beta vs S&P 500 | 1.06 | 1.65 |
| Max drawdown (3Y) | -27.5% | -53.6% |
| Market cap | – | $0.9B |
| P/E (trailing) | – | – |
| 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 | NXDR |
|---|---|---|
| 2022 | -20.5% | -73.9% |
| 2023 | +16.8% | -8.3% |
| 2024 | +11.4% | +25.4% |
| 2025 | +12.7% | -11.4% |
| 2026 | +22.3% | +10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and NXDR good diversifiers for each other?
Only partially. A correlation of 0.53 means IWM and NXDR 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 NXDR?
As of 2026-08-27, the correlation of weekly returns between IWM and NXDR is 0.53 over 3 years, 0.38 over 1 year and 0.51 over 5 years.
Is NXDR a good diversifier for IWM?
Only partially. A correlation of 0.53 means IWM and NXDR share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.53 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-nxdr.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iwm-vs-nxdr/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IWM correlations · NXDR correlations
