ESAB vs LECO: Correlation
ESAB Corporation (ESAB) and Lincoln Electric Holdings, Inc. (LECO) show a strong relationship: their 3-year correlation of weekly returns is 0.68.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ESAB and LECO?
Across a 3-year window, the weekly returns of ESAB and LECO correlate at 0.68, strong. Recent behaviour matches the longer record: 0.67 over 1 year against 0.68 over 3. Stretching to 5 years gives 0.64, with an annualized covariance of 683.8 %².
In ESAB's tracked universe of 13 assets, LECO sits right near the top at #1. Their recent paths diverged sharply: over the last 12 months LECO outperformed by 50.9 percentage points (-32.5% for ESAB against +18.4% for LECO).
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.
ESAB vs LECO: side by side
| ESAB (ESAB Corporation) | LECO (Lincoln Electric Holdings, Inc.) | |
|---|---|---|
| 1-year return | -32.5% | +18.4% |
| 5-year return | +60.4% | +120.5% |
| Volatility (ann.) | 36.3% | 27.9% |
| Beta vs S&P 500 | 1.30 | 1.03 |
| Max drawdown (3Y) | -41.6% | -34.3% |
| Market cap | $4.9B | $15.8B |
| P/E (trailing) | 25.8 | 29.0 |
| Dividend yield | 0.51% | 1.08% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ESAB | LECO |
|---|---|---|
| 2022 | – | +5.4% |
| 2023 | +85.2% | +52.6% |
| 2024 | +38.9% | -12.6% |
| 2025 | -6.5% | +29.6% |
| 2026 | -29.1% | +21.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ESAB and LECO good diversifiers for each other?
Only partially. A correlation of 0.68 means ESAB and LECO share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between ESAB and LECO?
The ESAB/LECO correlation stands at 0.68 on a 3-year window (1 year: 0.67, 5 years: 0.64), computed from weekly returns as of 2026-08-27.
Is LECO a good diversifier for ESAB?
Only partially. A correlation of 0.68 means ESAB and LECO share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.68 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/esab-vs-leco.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/esab-vs-leco/)
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Related comparisons
Hubs: ESAB correlations · LECO correlations
