IWM vs WSM: Correlation
How closely do iShares Russell 2000 ETF (IWM) and Williams-Sonoma, Inc. (WSM) trade together? Their weekly returns over three years give a correlation of 0.55, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and WSM?
Over the past 3 years, IWM and WSM moved with a correlation of 0.55, which is moderate. The link has tightened recently: the 1-year correlation (0.67) runs above the 3-year figure (0.55). Over 5 years the correlation is 0.58, and the annualized covariance of weekly returns is 464.9 %².
By 3-year correlation, WSM places #174 of the 320 assets tracked against IWM. Neither side won the trailing year by much: +28.4% against +25.8%. The rolling one-year correlation moved between 0.40 and 0.67 over the past three years, a moderate range. Risk is not evenly split, since WSM carries 2.2 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 WSM: side by side
| IWM (iShares Russell 2000 ETF) | WSM (Williams-Sonoma, Inc.) | |
|---|---|---|
| 1-year return | +28.4% | +25.8% |
| 5-year return | +41.5% | +182.0% |
| Volatility (ann.) | 19.8% | 43.0% |
| Beta vs S&P 500 | 1.06 | 1.33 |
| Max drawdown (3Y) | -27.5% | -36.8% |
| Market cap | – | $28.1B |
| P/E (trailing) | – | 24.4 |
| Dividend yield | 0.91% | 0.56% |
| 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 | WSM |
|---|---|---|
| 2022 | -20.5% | -30.5% |
| 2023 | +16.8% | +80.2% |
| 2024 | +11.4% | +86.6% |
| 2025 | +12.7% | -2.1% |
| 2026 | +22.3% | +34.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and WSM good diversifiers for each other?
To a limited degree. At 0.55 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 WSM?
As of 2026-08-27, the correlation of weekly returns between IWM and WSM is 0.55 over 3 years, 0.67 over 1 year and 0.58 over 5 years.
Is WSM a good diversifier for IWM?
To a limited degree. At 0.55 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 0.55 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-wsm.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iwm-vs-wsm/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IWM correlations · WSM correlations
