IWM vs REAL: Correlation
How closely do iShares Russell 2000 ETF (IWM) and The RealReal, Inc. (REAL) trade together? Their weekly returns over three years give a correlation of 0.44, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and REAL?
Over the past 3 years, IWM and REAL moved with a correlation of 0.44, which is moderate. Little has changed lately, as the 1-year reading of 0.49 lands near the 3-year figure. Over 5 years the correlation is 0.53, and the annualized covariance of weekly returns is 771.8 %².
Within IWM's tracked universe of 320 assets, REAL comes in at #286 by 3-year correlation. The last year tells two different stories: REAL led by 15.1 percentage points, +28.4% for IWM against +43.5% for REAL. Note the risk asymmetry: REAL runs 4.5 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 REAL: side by side
| IWM (iShares Russell 2000 ETF) | REAL (The RealReal, Inc.) | |
|---|---|---|
| 1-year return | +28.4% | +43.5% |
| 5-year return | +41.5% | -17.2% |
| Volatility (ann.) | 19.8% | 88.9% |
| Beta vs S&P 500 | 1.06 | 2.33 |
| Max drawdown (3Y) | -27.5% | -57.2% |
| Market cap | – | $1.3B |
| 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 | REAL |
|---|---|---|
| 2022 | -20.5% | -89.2% |
| 2023 | +16.8% | +60.8% |
| 2024 | +11.4% | +443.8% |
| 2025 | +12.7% | +44.4% |
| 2026 | +22.3% | -30.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and REAL good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.44 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between IWM and REAL?
Using weekly returns as of 2026-08-27: 0.44 over 3 years, with 0.49 over the last year and 0.53 over 5 years.
Is REAL a good diversifier for IWM?
Yes, to a useful degree: a correlation of 0.44 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.44 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-real.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iwm-vs-real/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IWM correlations · REAL correlations
