GNRC vs WTS: Correlation
Generac (GNRC) and Watts Water Technologies, Inc. (WTS) show a moderate relationship: their 3-year correlation of weekly returns is 0.53.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are GNRC and WTS?
Over the past 3 years, GNRC and WTS moved with a correlation of 0.53, which is moderate. The past 12 months show a weaker link (0.39) than the 3-year average (0.53). Over 5 years the correlation is 0.49, and the annualized covariance of weekly returns is 605.5 %².
Among the 35 assets we track against GNRC, WTS ranks #14 by 3-year correlation. The last year tells two different stories: WTS led by 26.4 percentage points, +5.5% for GNRC against +31.9% for WTS. One caveat on sizing: GNRC is 1.9 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
GNRC vs WTS: side by side
| GNRC (Generac) | WTS (Watts Water Technologies, Inc.) | |
|---|---|---|
| 1-year return | +5.5% | +31.9% |
| 5-year return | -55.4% | +125.4% |
| Volatility (ann.) | 46.1% | 24.6% |
| Beta vs S&P 500 | 1.35 | 0.89 |
| Max drawdown (3Y) | -47.8% | -19.5% |
| Market cap | $11.6B | $12.4B |
| P/E (trailing) | 47.4 | 32.5 |
| Dividend yield | 0.00% | 0.58% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | GNRC | WTS |
|---|---|---|
| 2022 | -71.4% | -24.1% |
| 2023 | +28.4% | +43.6% |
| 2024 | +20.0% | -1.6% |
| 2025 | -12.0% | +36.8% |
| 2026 | +44.7% | +35.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are GNRC and WTS good diversifiers for each other?
Somewhat, no more. With 0.53 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between GNRC and WTS?
Using weekly returns as of 2026-08-27: 0.53 over 3 years, with 0.39 over the last year and 0.49 over 5 years.
Is WTS a good diversifier for GNRC?
Somewhat, no more. With 0.53 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.53 mean?
On the −1 to +1 scale, 0.53 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.
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Related comparisons
Hubs: GNRC correlations · WTS correlations
