HD vs SHW: Correlation
Home Depot (The) (HD) and Sherwin-Williams (SHW) show a strong relationship: their 3-year correlation of weekly returns is 0.73.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HD and SHW?
On 3 years of weekly data the HD/SHW correlation comes out at 0.73, strong. Little has changed lately, as the 1-year reading of 0.73 lands near the 3-year figure. The 5-year figure is 0.71, and annualized covariance runs at 425.8 %².
Among the 54 assets we track against HD, SHW ranks #5 by 3-year correlation. The trailing year gives SHW the advantage: -17.4% versus -5.1%, a 12.3-point spread. The link looks structural: the rolling one-year correlation barely moved, holding between 0.62 and 0.83.
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.
HD vs SHW: side by side
| HD (Home Depot (The)) | SHW (Sherwin-Williams) | |
|---|---|---|
| 1-year return | -17.4% | -5.1% |
| 5-year return | +13.8% | +18.3% |
| Volatility (ann.) | 23.6% | 24.6% |
| Beta vs S&P 500 | 0.87 | 0.79 |
| Max drawdown (3Y) | -28.8% | -25.7% |
| Market cap | $327.9B | $83.8B |
| P/E (trailing) | 23.4 | 31.8 |
| Dividend yield | 1.38% | 0.91% |
| Sector / category | Consumer Discretionary | Materials |
Year-by-year returns
| Year | HD | SHW |
|---|---|---|
| 2022 | -22.0% | -32.0% |
| 2023 | +12.8% | +32.7% |
| 2024 | +15.0% | +9.9% |
| 2025 | -9.3% | -3.8% |
| 2026 | -3.1% | +7.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HD and SHW good diversifiers for each other?
Only partially. A correlation of 0.73 means HD and SHW 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 HD and SHW?
The HD/SHW correlation stands at 0.73 on a 3-year window (1 year: 0.73, 5 years: 0.71), computed from weekly returns as of 2026-08-27.
Is SHW a good diversifier for HD?
Only partially. A correlation of 0.73 means HD and SHW share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.73 mean?
On the −1 to +1 scale, 0.73 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/hd-vs-shw.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/hd-vs-shw/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: HD correlations · SHW correlations
