ALLE vs ITW: Correlation
How closely do Allegion (ALLE) and Illinois Tool Works (ITW) trade together? Their weekly returns over three years give a correlation of 0.66, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ALLE and ITW?
On 3 years of weekly data the ALLE/ITW correlation comes out at 0.66, strong. The relationship has been stable: the 1-year correlation (0.68) sits close to the 3-year figure. The 5-year figure is 0.71, and annualized covariance runs at 303.1 %².
ITW is one of the assets that tracks ALLE most closely: it ranks #2 out of the 33 assets we track against ALLE. On 12-month performance ITW holds a 14.6-point edge, -6.4% against +8.2%. Across three years, the rolling one-year figure varied moderately, from 0.56 to 0.83.
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.
ALLE vs ITW: side by side
| ALLE (Allegion) | ITW (Illinois Tool Works) | |
|---|---|---|
| 1-year return | -6.4% | +8.2% |
| 5-year return | +19.4% | +36.1% |
| Volatility (ann.) | 24.3% | 19.0% |
| Beta vs S&P 500 | 0.60 | 0.64 |
| Max drawdown (3Y) | -29.8% | -20.6% |
| Market cap | $13.6B | $80.2B |
| P/E (trailing) | 21.0 | 25.8 |
| Dividend yield | 1.32% | 2.26% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | ALLE | ITW |
|---|---|---|
| 2022 | -19.3% | -8.5% |
| 2023 | +22.3% | +21.6% |
| 2024 | +4.7% | -1.0% |
| 2025 | +22.8% | -0.4% |
| 2026 | +1.1% | +15.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ALLE and ITW good diversifiers for each other?
Somewhat, no more. With 0.66 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ALLE and ITW?
The ALLE/ITW correlation stands at 0.66 on a 3-year window (1 year: 0.68, 5 years: 0.71), computed from weekly returns as of 2026-08-27.
Is ITW a good diversifier for ALLE?
Somewhat, no more. With 0.66 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.66 mean?
On the −1 to +1 scale, 0.66 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/alle-vs-itw.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/alle-vs-itw/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ALLE correlations · ITW correlations
