ABM vs ITW: Correlation
Measured on weekly returns over the past three years, ABM Industries Incorporated (ABM) and Illinois Tool Works (ITW) carry a correlation of 0.57, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ABM and ITW?
Across a 3-year window, the weekly returns of ABM and ITW correlate at 0.57, moderate. The link has loosened recently: the 1-year correlation (0.46) runs below the 3-year figure (0.57). Stretching to 5 years gives 0.52, with an annualized covariance of 313.1 %².
ITW is one of the assets that tracks ABM most closely: it ranks #3 out of the 12 assets we track against ABM. The trailing year gives ITW the advantage: -2.5% versus +8.2%, a 10.7-point spread. One caveat on sizing: ABM is 1.5 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.
ABM vs ITW: side by side
| ABM (ABM Industries Incorporated) | ITW (Illinois Tool Works) | |
|---|---|---|
| 1-year return | -2.5% | +8.2% |
| 5-year return | +6.5% | +36.1% |
| Volatility (ann.) | 28.9% | 19.0% |
| Beta vs S&P 500 | 0.79 | 0.64 |
| Max drawdown (3Y) | -34.4% | -20.6% |
| Market cap | $2.8B | $80.2B |
| P/E (trailing) | 18.4 | 25.8 |
| Dividend yield | 2.32% | 2.26% |
| Sector / category | US Listed | Industrials |
Year-by-year returns
| Year | ABM | ITW |
|---|---|---|
| 2022 | +10.7% | -8.5% |
| 2023 | +3.0% | +21.6% |
| 2024 | +16.4% | -1.0% |
| 2025 | -15.5% | -0.4% |
| 2026 | +13.8% | +15.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ABM and ITW good diversifiers for each other?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ABM and ITW?
The ABM/ITW correlation stands at 0.57 on a 3-year window (1 year: 0.46, 5 years: 0.52), computed from weekly returns as of 2026-08-27.
Is ITW a good diversifier for ABM?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.57 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/abm-vs-itw.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/abm-vs-itw/)
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Related comparisons
Hubs: ABM correlations · ITW correlations
