SHY vs WIA: Correlation
iShares 1-3 Year Treasury Bond ETF (SHY) and Western Asset Inflation-Linked Income Fund (WIA) show a moderate relationship: their 3-year correlation of weekly returns is 0.55.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SHY and WIA?
Across a 3-year window, the weekly returns of SHY and WIA correlate at 0.55, moderate. Recent behaviour matches the longer record: 0.52 over 1 year against 0.55 over 3. Stretching to 5 years gives 0.45, with an annualized covariance of 6.2 %².
Within SHY's tracked universe of 62 assets, WIA comes in at #11 by 3-year correlation. Their 12-month results are close: +2.5% for SHY against +2.1% for WIA. Risk is not evenly split, since WIA carries 4.5 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.
SHY vs WIA: side by side
| SHY (iShares 1-3 Year Treasury Bond ETF) | WIA (Western Asset Inflation-Linked Income Fund) | |
|---|---|---|
| 1-year return | +2.5% | +2.1% |
| 5-year return | +9.6% | -3.9% |
| Volatility (ann.) | 1.6% | 7.2% |
| Beta vs S&P 500 | 0.00 | 0.20 |
| Max drawdown (3Y) | -1.0% | -6.4% |
| Market cap | – | $0.2B |
| P/E (trailing) | – | 14.0 |
| Dividend yield | 3.65% | 7.83% |
| Expense ratio | 0.15% | – |
| Assets under management | $25.1B | – |
| Sector / category | ETF · Bonds | US Listed |
SHY, iShares's Short Government fund, carries $25.1B under management, a 0.15% expense ratio, a 3.65% trailing dividend yield.
Year-by-year returns
| Year | SHY | WIA |
|---|---|---|
| 2022 | -3.9% | -25.8% |
| 2023 | +4.2% | +5.0% |
| 2024 | +3.9% | +6.1% |
| 2025 | +5.0% | +11.4% |
| 2026 | +1.1% | +1.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SHY and WIA good diversifiers for each other?
Only partially. A correlation of 0.55 means SHY and WIA 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 SHY and WIA?
Using weekly returns as of 2026-08-27: 0.55 over 3 years, with 0.52 over the last year and 0.45 over 5 years.
Is WIA a good diversifier for SHY?
Only partially. A correlation of 0.55 means SHY and WIA share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.55 mean?
On the −1 to +1 scale, 0.55 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/shy-vs-wia.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/shy-vs-wia/)
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Related comparisons
Hubs: SHY correlations · WIA correlations
