DCI vs ITW: Correlation
Measured on weekly returns over the past three years, Donaldson Company, Inc. (DCI) and Illinois Tool Works (ITW) carry a correlation of 0.66, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DCI and ITW?
Over the past 3 years, DCI and ITW moved with a correlation of 0.66, which is strong. Little has changed lately, as the 1-year reading of 0.68 lands near the 3-year figure. Over 5 years the correlation is 0.71, and the annualized covariance of weekly returns is 264.0 %².
ITW is one of the assets that tracks DCI most closely: it ranks #3 out of the 15 assets we track against DCI. On 12-month performance DCI holds a 5.8-point edge, +14.0% against +8.2%.
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.
DCI vs ITW: side by side
| DCI (Donaldson Company, Inc.) | ITW (Illinois Tool Works) | |
|---|---|---|
| 1-year return | +14.0% | +8.2% |
| 5-year return | +44.4% | +36.1% |
| Volatility (ann.) | 21.0% | 19.0% |
| Beta vs S&P 500 | 0.74 | 0.64 |
| Max drawdown (3Y) | -26.0% | -20.6% |
| Market cap | – | $80.2B |
| P/E (trailing) | 24.8 | 25.8 |
| Dividend yield | 1.30% | 2.26% |
| Sector / category | US Listed | Industrials |
Year-by-year returns
| Year | DCI | ITW |
|---|---|---|
| 2022 | +1.0% | -8.5% |
| 2023 | +12.8% | +21.6% |
| 2024 | +4.6% | -1.0% |
| 2025 | +33.7% | -0.4% |
| 2026 | +5.3% | +15.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DCI and ITW good diversifiers for each other?
To a limited degree. At 0.66 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 DCI and ITW?
As of 2026-08-27, the correlation of weekly returns between DCI and ITW is 0.66 over 3 years, 0.68 over 1 year and 0.71 over 5 years.
Is ITW a good diversifier for DCI?
To a limited degree. At 0.66 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 0.66 mean?
A reading of 0.66 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/dci-vs-itw.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/dci-vs-itw/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: DCI correlations · ITW correlations
