IWM vs PENN: Correlation
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and PENN Entertainment, Inc. (PENN) carry a correlation of 0.52, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and PENN?
On 3 years of weekly data the IWM/PENN correlation comes out at 0.52, moderate. The past 12 months show a weaker link (0.42) than the 3-year average (0.52). The 5-year figure is 0.57, and annualized covariance runs at 481.4 %².
Within IWM's tracked universe of 320 assets, PENN comes in at #210 by 3-year correlation. The last year tells two different stories: IWM led by 41.4 percentage points, +28.4% for IWM against -13.0% for PENN. One caveat on sizing: PENN is 2.4 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 PENN: side by side
| IWM (iShares Russell 2000 ETF) | PENN (PENN Entertainment, Inc.) | |
|---|---|---|
| 1-year return | +28.4% | -13.0% |
| 5-year return | +41.5% | -78.7% |
| Volatility (ann.) | 19.8% | 47.0% |
| Beta vs S&P 500 | 1.06 | 1.50 |
| Max drawdown (3Y) | -27.5% | -55.8% |
| Market cap | – | $2.3B |
| 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 | PENN |
|---|---|---|
| 2022 | -20.5% | -42.7% |
| 2023 | +16.8% | -12.4% |
| 2024 | +11.4% | -23.8% |
| 2025 | +12.7% | -25.6% |
| 2026 | +22.3% | +17.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that IWM holds PENN at a 0.07% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are IWM and PENN good diversifiers for each other?
To a limited degree. At 0.52 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 PENN?
Using weekly returns as of 2026-08-27: 0.52 over 3 years, with 0.42 over the last year and 0.57 over 5 years.
Is PENN a good diversifier for IWM?
To a limited degree. At 0.52 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 0.52 mean?
On the −1 to +1 scale, 0.52 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.
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Related comparisons
Hubs: IWM correlations · PENN correlations
