AOS vs SWK: Correlation
How closely do A. O. Smith (AOS) and Stanley Black & Decker (SWK) 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 AOS and SWK?
Over the past 3 years, AOS and SWK moved with a correlation of 0.63, which is strong. The link has tightened recently: the 1-year correlation (0.74) runs above the 3-year figure (0.63). Over 5 years the correlation is 0.62, and the annualized covariance of weekly returns is 520.6 %².
Within AOS's tracked universe of 33 assets, SWK comes in at #8 by 3-year correlation. The last year tells two different stories: SWK led by 49.6 percentage points, -12.6% for AOS against +37.0% for SWK. The rolling one-year correlation moved between 0.49 and 0.78 over the past three years, a moderate range. Note the risk asymmetry: SWK runs 1.5 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.
AOS vs SWK: side by side
| AOS (A. O. Smith) | SWK (Stanley Black & Decker) | |
|---|---|---|
| 1-year return | -12.6% | +37.0% |
| 5-year return | -6.7% | -39.1% |
| Volatility (ann.) | 23.5% | 35.4% |
| Beta vs S&P 500 | 0.67 | 1.19 |
| Max drawdown (3Y) | -36.9% | -48.3% |
| Market cap | $8.4B | $15.0B |
| P/E (trailing) | 17.4 | 24.4 |
| Dividend yield | 2.27% | 3.33% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | AOS | SWK |
|---|---|---|
| 2022 | -32.1% | -58.9% |
| 2023 | +46.7% | +35.6% |
| 2024 | -15.9% | -15.2% |
| 2025 | +0.1% | -3.2% |
| 2026 | -5.8% | +36.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AOS and SWK good diversifiers for each other?
To a limited degree. At 0.63 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between AOS and SWK?
As of 2026-08-27, the correlation of weekly returns between AOS and SWK is 0.63 over 3 years, 0.74 over 1 year and 0.62 over 5 years.
Is SWK a good diversifier for AOS?
To a limited degree. At 0.63 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.63 mean?
On the −1 to +1 scale, 0.63 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/aos-vs-swk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/aos-vs-swk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: AOS correlations · SWK correlations
