HD vs WSM: Correlation
Measured on weekly returns over the past three years, Home Depot (The) (HD) and Williams-Sonoma, Inc. (WSM) carry a correlation of 0.60, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HD and WSM?
On 3 years of weekly data the HD/WSM correlation comes out at 0.60, strong. The link has tightened recently: the 1-year correlation (0.73) runs above the 3-year figure (0.60). The 5-year figure is 0.60, and annualized covariance runs at 608.3 %².
Among the 54 assets we track against HD, WSM ranks #19 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months WSM outperformed by 43.2 percentage points (-17.4% for HD against +25.8% for WSM). The link looks structural: the rolling one-year correlation barely moved, holding between 0.48 and 0.71. One caveat on sizing: WSM is 1.8 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.
HD vs WSM: side by side
| HD (Home Depot (The)) | WSM (Williams-Sonoma, Inc.) | |
|---|---|---|
| 1-year return | -17.4% | +25.8% |
| 5-year return | +13.8% | +182.0% |
| Volatility (ann.) | 23.6% | 43.0% |
| Beta vs S&P 500 | 0.87 | 1.33 |
| Max drawdown (3Y) | -28.8% | -36.8% |
| Market cap | $327.9B | $28.1B |
| P/E (trailing) | 23.4 | 24.4 |
| Dividend yield | 1.38% | 0.56% |
| Sector / category | Consumer Discretionary | Consumer Discretionary |
Year-by-year returns
| Year | HD | WSM |
|---|---|---|
| 2022 | -22.0% | -30.5% |
| 2023 | +12.8% | +80.2% |
| 2024 | +15.0% | +86.6% |
| 2025 | -9.3% | -2.1% |
| 2026 | -3.1% | +34.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HD and WSM good diversifiers for each other?
Only partially. A correlation of 0.60 means HD and WSM 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 WSM?
As of 2026-08-27, the correlation of weekly returns between HD and WSM is 0.60 over 3 years, 0.73 over 1 year and 0.60 over 5 years.
Is WSM a good diversifier for HD?
Only partially. A correlation of 0.60 means HD and WSM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.60 mean?
A reading of 0.60 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/hd-vs-wsm.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/hd-vs-wsm/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: HD correlations · WSM correlations
