IWM vs RH: Correlation
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and RH (RH) carry a correlation of 0.69, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and RH?
On 3 years of weekly data the IWM/RH correlation comes out at 0.69, strong. Recent behaviour matches the longer record: 0.61 over 1 year against 0.69 over 3. The 5-year figure is 0.67, and annualized covariance runs at 916.9 %².
By 3-year correlation, RH places #48 of the 320 assets tracked against IWM. Their recent paths diverged sharply: over the last 12 months IWM outperformed by 64.9 percentage points (+28.4% for IWM against -36.5% for RH). Risk is not evenly split, since RH carries 3.4 times the volatility of the other side.
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 RH: side by side
| IWM (iShares Russell 2000 ETF) | RH (RH) | |
|---|---|---|
| 1-year return | +28.4% | -36.5% |
| 5-year return | +41.5% | -79.8% |
| Volatility (ann.) | 19.8% | 67.4% |
| Beta vs S&P 500 | 1.06 | 2.60 |
| Max drawdown (3Y) | -27.5% | -75.2% |
| Market cap | – | $2.7B |
| P/E (trailing) | – | 28.7 |
| 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 | RH |
|---|---|---|
| 2022 | -20.5% | -50.1% |
| 2023 | +16.8% | +9.1% |
| 2024 | +11.4% | +35.0% |
| 2025 | +12.7% | -54.5% |
| 2026 | +22.3% | -19.2% |
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 RH at a 0.07% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are IWM and RH good diversifiers for each other?
To a limited degree. At 0.69 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 RH?
The IWM/RH correlation stands at 0.69 on a 3-year window (1 year: 0.61, 5 years: 0.67), computed from weekly returns as of 2026-08-27.
Is RH a good diversifier for IWM?
To a limited degree. At 0.69 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 0.69 mean?
A reading of 0.69 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iwm-vs-rh.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iwm-vs-rh/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IWM correlations · RH correlations
