DE vs ITW: Correlation
Measured on weekly returns over the past three years, Deere & Company (DE) and Illinois Tool Works (ITW) carry a correlation of 0.57, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DE and ITW?
Across a 3-year window, the weekly returns of DE and ITW correlate at 0.57, moderate. Little has changed lately, as the 1-year reading of 0.51 lands near the 3-year figure. Stretching to 5 years gives 0.48, with an annualized covariance of 291.7 %².
Among the 33 assets we track against DE, ITW ranks #5 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months DE outperformed by 19.7 percentage points (+27.9% for DE against +8.2% for ITW). The rolling one-year correlation moved between 0.43 and 0.73 over the past three years, a moderate range.
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.
DE vs ITW: side by side
| DE (Deere & Company) | ITW (Illinois Tool Works) | |
|---|---|---|
| 1-year return | +27.9% | +8.2% |
| 5-year return | +74.5% | +36.1% |
| Volatility (ann.) | 26.7% | 19.0% |
| Beta vs S&P 500 | 0.65 | 0.64 |
| Max drawdown (3Y) | -19.9% | -20.6% |
| Market cap | $168.1B | $80.2B |
| P/E (trailing) | 35.2 | 25.8 |
| Dividend yield | 1.02% | 2.26% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | DE | ITW |
|---|---|---|
| 2022 | +26.6% | -8.5% |
| 2023 | -5.5% | +21.6% |
| 2024 | +7.6% | -1.0% |
| 2025 | +11.4% | -0.4% |
| 2026 | +34.5% | +15.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DE and ITW good diversifiers for each other?
To a limited degree. At 0.57 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 DE and ITW?
As of 2026-08-27, the correlation of weekly returns between DE and ITW is 0.57 over 3 years, 0.51 over 1 year and 0.48 over 5 years.
Is ITW a good diversifier for DE?
To a limited degree. At 0.57 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 0.57 mean?
A reading of 0.57 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/de-vs-itw.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/de-vs-itw/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: DE correlations · ITW correlations
