AOS vs ITW: Correlation
How closely do A. O. Smith (AOS) and Illinois Tool Works (ITW) trade together? Their weekly returns over three years give a correlation of 0.70, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AOS and ITW?
On 3 years of weekly data the AOS/ITW correlation comes out at 0.70, strong. Recent behaviour matches the longer record: 0.77 over 1 year against 0.70 over 3. The 5-year figure is 0.74, and annualized covariance runs at 311.6 %².
In AOS's tracked universe of 33 assets, ITW sits right near the top at #1. The last year tells two different stories: ITW led by 20.8 percentage points, -12.6% for AOS against +8.2% for ITW. The rolling one-year correlation moved between 0.52 and 0.83 over the past three years, a moderate range.
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.
AOS vs ITW: side by side
| AOS (A. O. Smith) | ITW (Illinois Tool Works) | |
|---|---|---|
| 1-year return | -12.6% | +8.2% |
| 5-year return | -6.7% | +36.1% |
| Volatility (ann.) | 23.5% | 19.0% |
| Beta vs S&P 500 | 0.67 | 0.64 |
| Max drawdown (3Y) | -36.9% | -20.6% |
| Market cap | $8.4B | $80.2B |
| P/E (trailing) | 17.4 | 25.8 |
| Dividend yield | 2.27% | 2.26% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | AOS | ITW |
|---|---|---|
| 2022 | -32.1% | -8.5% |
| 2023 | +46.7% | +21.6% |
| 2024 | -15.9% | -1.0% |
| 2025 | +0.1% | -0.4% |
| 2026 | -5.8% | +15.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AOS and ITW good diversifiers for each other?
Only partially. A correlation of 0.70 means AOS and ITW 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 AOS and ITW?
As of 2026-08-27, the correlation of weekly returns between AOS and ITW is 0.70 over 3 years, 0.77 over 1 year and 0.74 over 5 years.
Is ITW a good diversifier for AOS?
Only partially. A correlation of 0.70 means AOS and ITW share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.70 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/aos-vs-itw.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/aos-vs-itw/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: AOS correlations · ITW correlations
