IBM vs MO: Correlation
Measured on weekly returns over the past three years, IBM (IBM) and Altria (MO) carry a correlation of -0.19, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBM and MO?
Across a 3-year window, the weekly returns of IBM and MO correlate at -0.19, negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.26 over 1 year against -0.19 over 3. Stretching to 5 years gives -0.04, with an annualized covariance of -145.1 %².
Among the 28 assets we track against IBM, MO ranks #19 by 3-year correlation. The trailing year gives MO the advantage: +0.1% versus +8.8%, a 8.7-point spread. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.35 to 0.26. One caveat on sizing: IBM is 1.6 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.
IBM vs MO: side by side
| IBM (IBM) | MO (Altria) | |
|---|---|---|
| 1-year return | +0.1% | +8.8% |
| 5-year return | +117.6% | +100.4% |
| Volatility (ann.) | 34.7% | 21.8% |
| Beta vs S&P 500 | 0.78 | -0.07 |
| Max drawdown (3Y) | -37.5% | -16.4% |
| Market cap | $225.0B | $113.0B |
| P/E (trailing) | 20.4 | 14.6 |
| Dividend yield | 2.93% | 6.13% |
| Sector / category | Information Technology | Consumer Staples |
Year-by-year returns
| Year | IBM | MO |
|---|---|---|
| 2022 | +10.6% | +4.4% |
| 2023 | +21.8% | -3.7% |
| 2024 | +39.3% | +40.8% |
| 2025 | +38.2% | +18.2% |
| 2026 | -17.7% | +21.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBM and MO good diversifiers for each other?
By historical standards, yes. A correlation of -0.19 means the two rarely move for the same reasons.
FAQ
What is the correlation between IBM and MO?
Using weekly returns as of 2026-08-27: -0.19 over 3 years, with -0.26 over the last year and -0.04 over 5 years.
Is MO a good diversifier for IBM?
By historical standards, yes. A correlation of -0.19 means the two rarely move for the same reasons.
What does a correlation of -0.19 mean?
On the −1 to +1 scale, -0.19 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/ibm-vs-mo.json
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Related comparisons
Hubs: IBM correlations · MO correlations
