IBP vs WMS: Correlation
How closely do Installed Building Products, Inc. (IBP) and Advanced Drainage Systems, Inc. (WMS) trade together? Their weekly returns over three years give a correlation of 0.70, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBP and WMS?
Over the past 3 years, IBP and WMS moved with a correlation of 0.70, which is strong. Little has changed lately, as the 1-year reading of 0.66 lands near the 3-year figure. Over 5 years the correlation is 0.62, and the annualized covariance of weekly returns is 1188.7 %².
By 3-year correlation, WMS places #5 of the 17 assets tracked against IBP. Their 12-month results are close: -9.3% for IBP against -4.4% for WMS.
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.
IBP vs WMS: side by side
| IBP (Installed Building Products, Inc.) | WMS (Advanced Drainage Systems, Inc.) | |
|---|---|---|
| 1-year return | -9.3% | -4.4% |
| 5-year return | +107.4% | +22.1% |
| Volatility (ann.) | 45.9% | 37.1% |
| Beta vs S&P 500 | 1.13 | 1.31 |
| Max drawdown (3Y) | -42.7% | -45.8% |
| Market cap | $6.4B | $10.5B |
| P/E (trailing) | 26.5 | 23.6 |
| Dividend yield | 0.62% | 0.52% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | IBP | WMS |
|---|---|---|
| 2022 | -37.3% | -39.5% |
| 2023 | +117.6% | +72.4% |
| 2024 | -2.9% | -17.5% |
| 2025 | +50.6% | +26.0% |
| 2026 | -6.2% | -3.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBP and WMS good diversifiers for each other?
Somewhat, no more. With 0.70 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IBP and WMS?
Using weekly returns as of 2026-08-27: 0.70 over 3 years, with 0.66 over the last year and 0.62 over 5 years.
Is WMS a good diversifier for IBP?
Somewhat, no more. With 0.70 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.70 mean?
A reading of 0.70 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/ibp-vs-wms.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ibp-vs-wms/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IBP correlations · WMS correlations
