AOS vs WTS: Correlation
A. O. Smith (AOS) and Watts Water Technologies, Inc. (WTS) show a strong relationship: their 3-year correlation of weekly returns is 0.65.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AOS and WTS?
Across a 3-year window, the weekly returns of AOS and WTS correlate at 0.65, strong. The link has tightened recently: the 1-year correlation (0.78) runs above the 3-year figure (0.65). Stretching to 5 years gives 0.68, with an annualized covariance of 373.9 %².
Within AOS's tracked universe of 33 assets, WTS comes in at #5 by 3-year correlation. Correlation aside, the last 12 months split them widely, with WTS ahead by 44.5 points (-12.6% versus +31.9%).
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 WTS: side by side
| AOS (A. O. Smith) | WTS (Watts Water Technologies, Inc.) | |
|---|---|---|
| 1-year return | -12.6% | +31.9% |
| 5-year return | -6.7% | +125.4% |
| Volatility (ann.) | 23.5% | 24.6% |
| Beta vs S&P 500 | 0.67 | 0.89 |
| Max drawdown (3Y) | -36.9% | -19.5% |
| Market cap | $8.4B | $12.4B |
| P/E (trailing) | 17.4 | 32.5 |
| Dividend yield | 2.27% | 0.58% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | AOS | WTS |
|---|---|---|
| 2022 | -32.1% | -24.1% |
| 2023 | +46.7% | +43.6% |
| 2024 | -15.9% | -1.6% |
| 2025 | +0.1% | +36.8% |
| 2026 | -5.8% | +35.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AOS and WTS good diversifiers for each other?
Somewhat, no more. With 0.65 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between AOS and WTS?
Using weekly returns as of 2026-08-27: 0.65 over 3 years, with 0.78 over the last year and 0.68 over 5 years.
Is WTS a good diversifier for AOS?
Somewhat, no more. With 0.65 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.65 mean?
On the −1 to +1 scale, 0.65 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.
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Related comparisons
Hubs: AOS correlations · WTS correlations
