IWM vs SONO: Correlation
How closely do iShares Russell 2000 ETF (IWM) and Sonos, Inc. (SONO) trade together? Their weekly returns over three years give a correlation of 0.60, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and SONO?
Over the past 3 years, IWM and SONO moved with a correlation of 0.60, which is strong. The relationship has been stable: the 1-year correlation (0.50) sits close to the 3-year figure. Over 5 years the correlation is 0.57, and the annualized covariance of weekly returns is 535.8 %².
Within IWM's tracked universe of 320 assets, SONO comes in at #122 by 3-year correlation. Correlation aside, the last 12 months split them widely, with IWM ahead by 20.1 points (+28.4% versus +8.3%). Note the risk asymmetry: SONO runs 2.3 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 SONO: side by side
| IWM (iShares Russell 2000 ETF) | SONO (Sonos, Inc.) | |
|---|---|---|
| 1-year return | +28.4% | +8.3% |
| 5-year return | +41.5% | -61.8% |
| Volatility (ann.) | 19.8% | 44.8% |
| Beta vs S&P 500 | 1.06 | 1.66 |
| Max drawdown (3Y) | -27.5% | -60.5% |
| Market cap | – | $1.8B |
| P/E (trailing) | – | 33.6 |
| 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 | SONO |
|---|---|---|
| 2022 | -20.5% | -43.3% |
| 2023 | +16.8% | +1.4% |
| 2024 | +11.4% | -12.3% |
| 2025 | +12.7% | +16.8% |
| 2026 | +22.3% | -14.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.06% of IWM is SONO itself, so the fund partly moves with the stock by construction.
Are IWM and SONO good diversifiers for each other?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IWM and SONO?
As of 2026-08-27, the correlation of weekly returns between IWM and SONO is 0.60 over 3 years, 0.50 over 1 year and 0.57 over 5 years.
Is SONO a good diversifier for IWM?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.60 mean?
A reading of 0.60 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-sono.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iwm-vs-sono/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IWM correlations · SONO correlations
