IWM vs RL: Correlation
iShares Russell 2000 ETF (IWM) and Ralph Lauren Corporation (RL) show a moderate relationship: their 3-year correlation of weekly returns is 0.56.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and RL?
Over the past 3 years, IWM and RL moved with a correlation of 0.56, which is moderate. Recent behaviour matches the longer record: 0.58 over 1 year against 0.56 over 3. Over 5 years the correlation is 0.61, and the annualized covariance of weekly returns is 372.3 %².
By 3-year correlation, RL places #163 of the 320 assets tracked against IWM. The trailing year gives IWM the advantage: +28.4% versus +20.7%, a 7.7-point spread. The link looks structural: the rolling one-year correlation barely moved, holding between 0.46 and 0.68. Risk is not evenly split, since RL carries 1.7 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 RL: side by side
| IWM (iShares Russell 2000 ETF) | RL (Ralph Lauren Corporation) | |
|---|---|---|
| 1-year return | +28.4% | +20.7% |
| 5-year return | +41.5% | +232.5% |
| Volatility (ann.) | 19.8% | 33.6% |
| Beta vs S&P 500 | 1.06 | 1.07 |
| Max drawdown (3Y) | -27.5% | -36.2% |
| Market cap | – | $21.0B |
| P/E (trailing) | – | 22.8 |
| Dividend yield | 0.91% | 1.03% |
| Expense ratio | 0.19% | – |
| Assets under management | $80.1B | – |
| Sector / category | ETF · US Small & Mid Cap | Consumer Discretionary |
IWM is a Small Blend fund from iShares: $80.1B under management, 1757 holdings, a 0.19% expense ratio, a 0.91% trailing dividend yield.
Year-by-year returns
| Year | IWM | RL |
|---|---|---|
| 2022 | -20.5% | -8.4% |
| 2023 | +16.8% | +39.8% |
| 2024 | +11.4% | +62.9% |
| 2025 | +12.7% | +55.0% |
| 2026 | +22.3% | +0.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and RL good diversifiers for each other?
Only partially. A correlation of 0.56 means IWM and RL share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between IWM and RL?
Using weekly returns as of 2026-08-27: 0.56 over 3 years, with 0.58 over the last year and 0.61 over 5 years.
Is RL a good diversifier for IWM?
Only partially. A correlation of 0.56 means IWM and RL share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.56 mean?
On the −1 to +1 scale, 0.56 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-rl.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/iwm-vs-rl/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IWM correlations · RL correlations
