IWM vs PTON: Correlation
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and Peloton Interactive, Inc. (PTON) carry a correlation of 0.51, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and PTON?
On 3 years of weekly data the IWM/PTON correlation comes out at 0.51, moderate. The relationship has been stable: the 1-year correlation (0.43) sits close to the 3-year figure. The 5-year figure is 0.50, and annualized covariance runs at 754.9 %².
Within IWM's tracked universe of 320 assets, PTON comes in at #220 by 3-year correlation. Correlation aside, the last 12 months split them widely, with IWM ahead by 59.4 points (+28.4% versus -31.0%). Note the risk asymmetry: PTON runs 3.8 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 PTON: side by side
| IWM (iShares Russell 2000 ETF) | PTON (Peloton Interactive, Inc.) | |
|---|---|---|
| 1-year return | +28.4% | -31.0% |
| 5-year return | +41.5% | -94.8% |
| Volatility (ann.) | 19.8% | 74.3% |
| Beta vs S&P 500 | 1.06 | 2.10 |
| Max drawdown (3Y) | -27.5% | -64.9% |
| Market cap | – | $2.3B |
| P/E (trailing) | – | 37.9 |
| Dividend yield | 0.91% | 0.00% |
| Expense ratio | 0.19% | – |
| Assets under management | $80.1B | – |
| Sector / category | ETF · US Small & Mid Cap | US Listed |
On the fund side, IWM sits in the Small Blend category at iShares, with $80.1B under management, 1757 holdings, a 0.19% expense ratio, a 0.91% trailing dividend yield.
Year-by-year returns
| Year | IWM | PTON |
|---|---|---|
| 2022 | -20.5% | -77.8% |
| 2023 | +16.8% | -23.3% |
| 2024 | +11.4% | +42.9% |
| 2025 | +12.7% | -29.2% |
| 2026 | +22.3% | -14.0% |
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 PTON at a 0.07% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are IWM and PTON good diversifiers for each other?
To a limited degree. At 0.51 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 PTON?
The IWM/PTON correlation stands at 0.51 on a 3-year window (1 year: 0.43, 5 years: 0.50), computed from weekly returns as of 2026-08-27.
Is PTON a good diversifier for IWM?
To a limited degree. At 0.51 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 0.51 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-pton.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iwm-vs-pton/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IWM correlations · PTON correlations
