ALG vs WTS: Correlation
Measured on weekly returns over the past three years, Alamo Group, Inc. (ALG) and Watts Water Technologies, Inc. (WTS) carry a correlation of 0.63, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ALG and WTS?
On 3 years of weekly data the ALG/WTS correlation comes out at 0.63, strong. The relationship has been stable: the 1-year correlation (0.64) sits close to the 3-year figure. The 5-year figure is 0.58, and annualized covariance runs at 469.9 %².
By 3-year correlation, WTS places #5 of the 17 assets tracked against ALG. The last year tells two different stories: WTS led by 55.9 percentage points, -24.0% for ALG against +31.9% for WTS.
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.
ALG vs WTS: side by side
| ALG (Alamo Group, Inc.) | WTS (Watts Water Technologies, Inc.) | |
|---|---|---|
| 1-year return | -24.0% | +31.9% |
| 5-year return | +9.2% | +125.4% |
| Volatility (ann.) | 30.3% | 24.6% |
| Beta vs S&P 500 | 0.83 | 0.89 |
| Max drawdown (3Y) | -36.3% | -19.5% |
| Market cap | $2.0B | $12.4B |
| P/E (trailing) | 19.8 | 32.5 |
| Dividend yield | 0.78% | 0.58% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ALG | WTS |
|---|---|---|
| 2022 | -3.3% | -24.1% |
| 2023 | +49.2% | +43.6% |
| 2024 | -11.1% | -1.6% |
| 2025 | -9.1% | +36.8% |
| 2026 | -1.7% | +35.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ALG and WTS good diversifiers for each other?
Only partially. A correlation of 0.63 means ALG and WTS 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 ALG and WTS?
As of 2026-08-27, the correlation of weekly returns between ALG and WTS is 0.63 over 3 years, 0.64 over 1 year and 0.58 over 5 years.
Is WTS a good diversifier for ALG?
Only partially. A correlation of 0.63 means ALG and WTS share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.63 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.
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Related comparisons
Hubs: ALG correlations · WTS correlations
