IWM vs TEM: Correlation
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and Tempus AI, Inc. (TEM) carry a correlation of 0.55, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and TEM?
Across a 3-year window, the weekly returns of IWM and TEM correlate at 0.55, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.39 versus 0.55 over 3 years. Stretching to 5 years gives n/a, with an annualized covariance of 1153.1 %².
Within IWM's tracked universe of 320 assets, TEM comes in at #173 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months IWM outperformed by 31.9 percentage points (+28.4% for IWM against -3.5% for TEM). One caveat on sizing: TEM is 5.3 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 TEM: side by side
| IWM (iShares Russell 2000 ETF) | TEM (Tempus AI, Inc.) | |
|---|---|---|
| 1-year return | +28.4% | -3.5% |
| 5-year return | +41.5% | n/a |
| Volatility (ann.) | 19.8% | 104.7% |
| Beta vs S&P 500 | 1.06 | 3.25 |
| Max drawdown (3Y) | -27.5% | -59.8% |
| Market cap | – | $12.8B |
| 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 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 | TEM |
|---|---|---|
| 2022 | -20.5% | – |
| 2023 | +16.8% | – |
| 2024 | +11.4% | – |
| 2025 | +12.7% | +74.9% |
| 2026 | +22.3% | +19.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and TEM good diversifiers for each other?
Somewhat, no more. With 0.55 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IWM and TEM?
Using weekly returns as of 2026-08-27: 0.55 over 3 years, with 0.39 over the last year and n/a over 5 years.
Is TEM a good diversifier for IWM?
Somewhat, no more. With 0.55 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.55 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-tem.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/iwm-vs-tem/)
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Related comparisons
Hubs: IWM correlations · TEM correlations
