HON vs ITW: Correlation
How closely do Honeywell Technologies (HON) and Illinois Tool Works (ITW) trade together? Their weekly returns over three years give a correlation of 0.49, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HON and ITW?
Across a 3-year window, the weekly returns of HON and ITW correlate at 0.49, moderate. The link has loosened recently: the 1-year correlation (0.34) runs below the 3-year figure (0.49). Stretching to 5 years gives 0.56, with an annualized covariance of 217.1 %².
Within HON's tracked universe of 32 assets, ITW comes in at #17 by 3-year correlation. On 12-month performance ITW holds a 5.5-point edge, +2.7% against +8.2%. On a rolling one-year basis the correlation drifted between 0.29 and 0.65, a moderate band.
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.
HON vs ITW: side by side
| HON (Honeywell Technologies) | ITW (Illinois Tool Works) | |
|---|---|---|
| 1-year return | +2.7% | +8.2% |
| 5-year return | +6.6% | +36.1% |
| Volatility (ann.) | 23.2% | 19.0% |
| Beta vs S&P 500 | 0.74 | 0.64 |
| Max drawdown (3Y) | -22.1% | -20.6% |
| Market cap | $69.9B | $80.2B |
| P/E (trailing) | 8.5 | 25.8 |
| Dividend yield | 4.26% | 2.26% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | HON | ITW |
|---|---|---|
| 2022 | +4.9% | -8.5% |
| 2023 | +0.0% | +21.6% |
| 2024 | +10.0% | -1.0% |
| 2025 | -6.4% | -0.4% |
| 2026 | +9.2% | +15.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HON and ITW good diversifiers for each other?
A fair diversifier. At 0.49, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between HON and ITW?
As of 2026-08-27, the correlation of weekly returns between HON and ITW is 0.49 over 3 years, 0.34 over 1 year and 0.56 over 5 years.
Is ITW a good diversifier for HON?
A fair diversifier. At 0.49, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
What does a correlation of 0.49 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/hon-vs-itw.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/hon-vs-itw/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: HON correlations · ITW correlations
