AOS vs PPG: Correlation
Measured on weekly returns over the past three years, A. O. Smith (AOS) and PPG Industries (PPG) carry a correlation of 0.68, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AOS and PPG?
On 3 years of weekly data the AOS/PPG correlation comes out at 0.68, strong. Little has changed lately, as the 1-year reading of 0.76 lands near the 3-year figure. The 5-year figure is 0.64, and annualized covariance runs at 406.3 %².
PPG is one of the assets that tracks AOS most closely: it ranks #3 out of the 33 assets we track against AOS. Correlation aside, the last 12 months split them widely, with PPG ahead by 16.4 points (-12.6% versus +3.8%). Across three years, the rolling one-year figure varied moderately, from 0.47 to 0.80.
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 PPG: side by side
| AOS (A. O. Smith) | PPG (PPG Industries) | |
|---|---|---|
| 1-year return | -12.6% | +3.8% |
| 5-year return | -6.7% | -22.0% |
| Volatility (ann.) | 23.5% | 25.5% |
| Beta vs S&P 500 | 0.67 | 0.90 |
| Max drawdown (3Y) | -36.9% | -37.4% |
| Market cap | $8.4B | $25.2B |
| P/E (trailing) | 17.4 | 16.4 |
| Dividend yield | 2.27% | 2.48% |
| Sector / category | Industrials | Materials |
Year-by-year returns
| Year | AOS | PPG |
|---|---|---|
| 2022 | -32.1% | -25.7% |
| 2023 | +46.7% | +21.2% |
| 2024 | -15.9% | -18.5% |
| 2025 | +0.1% | -12.0% |
| 2026 | -5.8% | +12.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AOS and PPG good diversifiers for each other?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between AOS and PPG?
The AOS/PPG correlation stands at 0.68 on a 3-year window (1 year: 0.76, 5 years: 0.64), computed from weekly returns as of 2026-08-27.
Is PPG a good diversifier for AOS?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.68 mean?
A reading of 0.68 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/aos-vs-ppg.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/aos-vs-ppg/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: AOS correlations · PPG correlations
