AGCO vs ITW: Correlation
How closely do AGCO Corporation (AGCO) and Illinois Tool Works (ITW) trade together? Their weekly returns over three years give a correlation of 0.63, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AGCO and ITW?
Over the past 3 years, AGCO and ITW moved with a correlation of 0.63, which is strong. Little has changed lately, as the 1-year reading of 0.59 lands near the 3-year figure. Over 5 years the correlation is 0.53, and the annualized covariance of weekly returns is 391.8 %².
By 3-year correlation, ITW places #4 of the 15 assets tracked against AGCO. On 12-month performance ITW holds a 9.8-point edge, -1.6% against +8.2%. Note the risk asymmetry: AGCO runs 1.7 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.
AGCO vs ITW: side by side
| AGCO (AGCO Corporation) | ITW (Illinois Tool Works) | |
|---|---|---|
| 1-year return | -1.6% | +8.2% |
| 5-year return | -7.9% | +36.1% |
| Volatility (ann.) | 32.5% | 19.0% |
| Beta vs S&P 500 | 0.80 | 0.64 |
| Max drawdown (3Y) | -40.5% | -20.6% |
| Market cap | $7.8B | $80.2B |
| P/E (trailing) | 15.4 | 25.8 |
| Dividend yield | 1.05% | 2.26% |
| Sector / category | US Listed | Industrials |
Year-by-year returns
| Year | AGCO | ITW |
|---|---|---|
| 2022 | +25.0% | -8.5% |
| 2023 | -7.9% | +21.6% |
| 2024 | -20.3% | -1.0% |
| 2025 | +12.9% | -0.4% |
| 2026 | +7.1% | +15.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AGCO and ITW good diversifiers for each other?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between AGCO and ITW?
Using weekly returns as of 2026-08-27: 0.63 over 3 years, with 0.59 over the last year and 0.53 over 5 years.
Is ITW a good diversifier for AGCO?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.63 mean?
A reading of 0.63 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/agco-vs-itw.json
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[](https://www.pairbook.io/pair/agco-vs-itw/)
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Related comparisons
Hubs: AGCO correlations · ITW correlations
