DOW vs STLD: Correlation
How closely do Dow Inc. (DOW) and Steel Dynamics (STLD) trade together? Their weekly returns over three years give a correlation of 0.36, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DOW and STLD?
Over the past 3 years, DOW and STLD moved with a correlation of 0.36, which is moderate. Lately the two have drifted apart, with the 1-year correlation at 0.16 versus 0.36 over 3 years. Over 5 years the correlation is 0.43, and the annualized covariance of weekly returns is 433.5 %².
Within DOW's tracked universe of 32 assets, STLD comes in at #20 by 3-year correlation. The last year tells two different stories: STLD led by 50.8 percentage points, +29.0% for DOW against +79.8% for STLD. Across three years, the rolling one-year figure varied moderately, from 0.24 to 0.62.
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.
DOW vs STLD: side by side
| DOW (Dow Inc.) | STLD (Steel Dynamics) | |
|---|---|---|
| 1-year return | +29.0% | +79.8% |
| 5-year return | -38.4% | +262.0% |
| Volatility (ann.) | 35.2% | 34.5% |
| Beta vs S&P 500 | 0.62 | 1.13 |
| Max drawdown (3Y) | -62.2% | -28.7% |
| Market cap | $21.9B | $33.8B |
| P/E (trailing) | – | 21.4 |
| Dividend yield | 4.62% | 0.87% |
| Sector / category | Materials | Materials |
Year-by-year returns
| Year | DOW | STLD |
|---|---|---|
| 2022 | -6.6% | +60.1% |
| 2023 | +14.7% | +22.8% |
| 2024 | -22.8% | -2.0% |
| 2025 | -37.4% | +50.7% |
| 2026 | +32.6% | +39.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DOW and STLD good diversifiers for each other?
A fair diversifier. At 0.36, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between DOW and STLD?
Using weekly returns as of 2026-08-27: 0.36 over 3 years, with 0.16 over the last year and 0.43 over 5 years.
Is STLD a good diversifier for DOW?
A fair diversifier. At 0.36, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.36 mean?
On the −1 to +1 scale, 0.36 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/dow-vs-stld.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/dow-vs-stld/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: DOW correlations · STLD correlations
