IWM vs PGY: Correlation
How closely do iShares Russell 2000 ETF (IWM) and Pagaya Technologies Ltd. - Class A (PGY) trade together? Their weekly returns over three years give a correlation of 0.49, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and PGY?
Across a 3-year window, the weekly returns of IWM and PGY correlate at 0.49, moderate. The relationship has been stable: the 1-year correlation (0.48) sits close to the 3-year figure. Stretching to 5 years gives 0.33, with an annualized covariance of 828.2 %².
By 3-year correlation, PGY places #247 of the 320 assets tracked against IWM. The last year tells two different stories: IWM led by 61.4 percentage points, +28.4% for IWM against -33.0% for PGY. Note the risk asymmetry: PGY runs 4.3 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 PGY: side by side
| IWM (iShares Russell 2000 ETF) | PGY (Pagaya Technologies Ltd. - Class A) | |
|---|---|---|
| 1-year return | +28.4% | -33.0% |
| 5-year return | +41.5% | -79.9% |
| Volatility (ann.) | 19.8% | 86.1% |
| Beta vs S&P 500 | 1.06 | 2.49 |
| Max drawdown (3Y) | -27.5% | -75.7% |
| Market cap | – | $1.9B |
| P/E (trailing) | – | 15.9 |
| 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 | PGY |
|---|---|---|
| 2022 | -20.5% | -87.5% |
| 2023 | +16.8% | +11.3% |
| 2024 | +11.4% | -43.9% |
| 2025 | +12.7% | +125.0% |
| 2026 | +22.3% | +11.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and PGY good diversifiers for each other?
Reasonably. At 0.49, IWM and PGY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between IWM and PGY?
The IWM/PGY correlation stands at 0.49 on a 3-year window (1 year: 0.48, 5 years: 0.33), computed from weekly returns as of 2026-08-27.
Is PGY a good diversifier for IWM?
Reasonably. At 0.49, IWM and PGY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.49 mean?
On the −1 to +1 scale, 0.49 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-pgy.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/iwm-vs-pgy/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IWM correlations · PGY correlations
