ARL vs SHW: Correlation
American Realty Investors, Inc. (ARL) and Sherwin-Williams (SHW) show a moderate relationship: their 3-year correlation of weekly returns is 0.43.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ARL and SHW?
On 3 years of weekly data the ARL/SHW correlation comes out at 0.43, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.28 versus 0.43 over 3 years. The 5-year figure is 0.22, and annualized covariance runs at 564.1 %².
Within ARL's tracked universe of 10 assets, SHW comes in at #4 by 3-year correlation. Neither side won the trailing year by much: -2.8% against -5.1%. Note the risk asymmetry: ARL runs 2.1 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.
ARL vs SHW: side by side
| ARL (American Realty Investors, Inc.) | SHW (Sherwin-Williams) | |
|---|---|---|
| 1-year return | -2.8% | -5.1% |
| 5-year return | +36.2% | +18.3% |
| Volatility (ann.) | 52.7% | 24.6% |
| Beta vs S&P 500 | 0.99 | 0.79 |
| Max drawdown (3Y) | -57.8% | -25.7% |
| Market cap | – | $83.8B |
| P/E (trailing) | 29.4 | 31.8 |
| Dividend yield | 0.00% | 0.91% |
| Sector / category | US Listed | Materials |
Year-by-year returns
| Year | ARL | SHW |
|---|---|---|
| 2022 | +102.8% | -32.0% |
| 2023 | -32.1% | +32.7% |
| 2024 | -15.7% | +9.9% |
| 2025 | +9.4% | -3.8% |
| 2026 | -6.6% | +7.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ARL and SHW good diversifiers for each other?
Reasonably. At 0.43, ARL and SHW keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between ARL and SHW?
Using weekly returns as of 2026-08-27: 0.43 over 3 years, with 0.28 over the last year and 0.22 over 5 years.
Is SHW a good diversifier for ARL?
Reasonably. At 0.43, ARL and SHW keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.43 mean?
A reading of 0.43 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/arl-vs-shw.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/arl-vs-shw/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ARL correlations · SHW correlations
