IEX vs ITW: Correlation
How closely do IDEX Corporation (IEX) and Illinois Tool Works (ITW) trade together? Their weekly returns over three years give a correlation of 0.66, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEX and ITW?
Across a 3-year window, the weekly returns of IEX and ITW correlate at 0.66, strong. The relationship has been stable: the 1-year correlation (0.62) sits close to the 3-year figure. Stretching to 5 years gives 0.67, with an annualized covariance of 293.1 %².
By 3-year correlation, ITW places #15 of the 40 assets tracked against IEX. The last year tells two different stories: IEX led by 34.8 percentage points, +43.0% for IEX against +8.2% for ITW. Across three years, the rolling one-year figure varied moderately, from 0.48 to 0.75.
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.
IEX vs ITW: side by side
| IEX (IDEX Corporation) | ITW (Illinois Tool Works) | |
|---|---|---|
| 1-year return | +43.0% | +8.2% |
| 5-year return | +10.5% | +36.1% |
| Volatility (ann.) | 23.3% | 19.0% |
| Beta vs S&P 500 | 0.89 | 0.64 |
| Max drawdown (3Y) | -34.6% | -20.6% |
| Market cap | $17.2B | $80.2B |
| P/E (trailing) | 33.8 | 25.8 |
| Dividend yield | 1.23% | 2.26% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | IEX | ITW |
|---|---|---|
| 2022 | -2.2% | -8.5% |
| 2023 | -3.8% | +21.6% |
| 2024 | -2.4% | -1.0% |
| 2025 | -13.7% | -0.4% |
| 2026 | +32.9% | +15.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEX and ITW good diversifiers for each other?
Somewhat, no more. With 0.66 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IEX and ITW?
Using weekly returns as of 2026-08-27: 0.66 over 3 years, with 0.62 over the last year and 0.67 over 5 years.
Is ITW a good diversifier for IEX?
Somewhat, no more. With 0.66 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.66 mean?
A reading of 0.66 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/iex-vs-itw.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iex-vs-itw/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IEX correlations · ITW correlations
