AOS vs WMS: Correlation
Measured on weekly returns over the past three years, A. O. Smith (AOS) and Advanced Drainage Systems, Inc. (WMS) carry a correlation of 0.60, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AOS and WMS?
Over the past 3 years, AOS and WMS moved with a correlation of 0.60, which is strong. Recent behaviour matches the longer record: 0.61 over 1 year against 0.60 over 3. Over 5 years the correlation is 0.52, and the annualized covariance of weekly returns is 523.2 %².
Within AOS's tracked universe of 33 assets, WMS comes in at #15 by 3-year correlation. The trailing year gives WMS the advantage: -12.6% versus -4.4%, a 8.2-point spread. Note the risk asymmetry: WMS runs 1.6 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 WMS: side by side
| AOS (A. O. Smith) | WMS (Advanced Drainage Systems, Inc.) | |
|---|---|---|
| 1-year return | -12.6% | -4.4% |
| 5-year return | -6.7% | +22.1% |
| Volatility (ann.) | 23.5% | 37.1% |
| Beta vs S&P 500 | 0.67 | 1.31 |
| Max drawdown (3Y) | -36.9% | -45.8% |
| Market cap | $8.4B | $10.5B |
| P/E (trailing) | 17.4 | 23.6 |
| Dividend yield | 2.27% | 0.52% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | AOS | WMS |
|---|---|---|
| 2022 | -32.1% | -39.5% |
| 2023 | +46.7% | +72.4% |
| 2024 | -15.9% | -17.5% |
| 2025 | +0.1% | +26.0% |
| 2026 | -5.8% | -3.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AOS and WMS good diversifiers for each other?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between AOS and WMS?
Using weekly returns as of 2026-08-27: 0.60 over 3 years, with 0.61 over the last year and 0.52 over 5 years.
Is WMS a good diversifier for AOS?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.60 mean?
On the −1 to +1 scale, 0.60 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-wms.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/aos-vs-wms/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: AOS correlations · WMS correlations
