IR vs ITW: Correlation
How closely do Ingersoll Rand (IR) and Illinois Tool Works (ITW) trade together? Their weekly returns over three years give a correlation of 0.71, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IR and ITW?
Across a 3-year window, the weekly returns of IR and ITW correlate at 0.71, strong. The link has tightened recently: the 1-year correlation (0.85) runs above the 3-year figure (0.71). Stretching to 5 years gives 0.70, with an annualized covariance of 401.6 %².
Within IR's tracked universe of 61 assets, ITW comes in at #7 by 3-year correlation. Over the last 12 months ITW came out ahead by 10.2 percentage points (-2.0% against +8.2%). This link changes with the market regime, having swung between 0.30 and 0.86 on a rolling one-year basis. One caveat on sizing: IR 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.
IR vs ITW: side by side
| IR (Ingersoll Rand) | ITW (Illinois Tool Works) | |
|---|---|---|
| 1-year return | -2.0% | +8.2% |
| 5-year return | +49.2% | +36.1% |
| Volatility (ann.) | 29.8% | 19.0% |
| Beta vs S&P 500 | 1.17 | 0.64 |
| Max drawdown (3Y) | -36.6% | -20.6% |
| Market cap | $30.6B | $80.2B |
| P/E (trailing) | 32.6 | 25.8 |
| Dividend yield | 0.15% | 2.26% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | IR | ITW |
|---|---|---|
| 2022 | -15.4% | -8.5% |
| 2023 | +48.2% | +21.6% |
| 2024 | +17.1% | -1.0% |
| 2025 | -12.3% | -0.4% |
| 2026 | -0.2% | +15.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IR and ITW good diversifiers for each other?
To a limited degree. At 0.71 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between IR and ITW?
As of 2026-08-27, the correlation of weekly returns between IR and ITW is 0.71 over 3 years, 0.85 over 1 year and 0.70 over 5 years.
Is ITW a good diversifier for IR?
To a limited degree. At 0.71 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.71 mean?
A reading of 0.71 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/ir-vs-itw.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ir-vs-itw/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IR correlations · ITW correlations
