IR vs WSO: Correlation
Measured on weekly returns over the past three years, Ingersoll Rand (IR) and Watsco, Inc. (WSO) carry a correlation of 0.62, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IR and WSO?
On 3 years of weekly data the IR/WSO correlation comes out at 0.62, strong. Little has changed lately, as the 1-year reading of 0.64 lands near the 3-year figure. The 5-year figure is 0.60, and annualized covariance runs at 589.3 %².
Within IR's tracked universe of 61 assets, WSO comes in at #27 by 3-year correlation. Correlation aside, the last 12 months split them widely, with IR ahead by 18.8 points (-2.0% versus -20.8%).
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 WSO: side by side
| IR (Ingersoll Rand) | WSO (Watsco, Inc.) | |
|---|---|---|
| 1-year return | -2.0% | -20.8% |
| 5-year return | +49.2% | +28.2% |
| Volatility (ann.) | 29.8% | 31.9% |
| Beta vs S&P 500 | 1.17 | 1.05 |
| Max drawdown (3Y) | -36.6% | -44.1% |
| Market cap | $30.6B | $12.9B |
| P/E (trailing) | 32.6 | 27.0 |
| Dividend yield | 0.15% | 3.91% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | IR | WSO |
|---|---|---|
| 2022 | -15.4% | -17.7% |
| 2023 | +48.2% | +77.0% |
| 2024 | +17.1% | +13.2% |
| 2025 | -12.3% | -27.0% |
| 2026 | -0.2% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IR and WSO good diversifiers for each other?
Only partially. A correlation of 0.62 means IR and WSO share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between IR and WSO?
Using weekly returns as of 2026-08-27: 0.62 over 3 years, with 0.64 over the last year and 0.60 over 5 years.
Is WSO a good diversifier for IR?
Only partially. A correlation of 0.62 means IR and WSO share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.62 mean?
On the −1 to +1 scale, 0.62 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/ir-vs-wso.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ir-vs-wso/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IR correlations · WSO correlations
