ITW vs KMT: Correlation
How closely do Illinois Tool Works (ITW) and Kennametal Inc. (KMT) trade together? Their weekly returns over three years give a correlation of 0.61, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ITW and KMT?
Over the past 3 years, ITW and KMT moved with a correlation of 0.61, which is strong. The relationship has been stable: the 1-year correlation (0.61) sits close to the 3-year figure. Over 5 years the correlation is 0.66, and the annualized covariance of weekly returns is 391.7 %².
By 3-year correlation, KMT places #28 of the 81 assets tracked against ITW. The last year tells two different stories: KMT led by 35.1 percentage points, +8.2% for ITW against +43.3% for KMT. One caveat on sizing: KMT is 1.8 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.
ITW vs KMT: side by side
| ITW (Illinois Tool Works) | KMT (Kennametal Inc.) | |
|---|---|---|
| 1-year return | +8.2% | +43.3% |
| 5-year return | +36.1% | -6.6% |
| Volatility (ann.) | 19.0% | 33.9% |
| Beta vs S&P 500 | 0.64 | 0.73 |
| Max drawdown (3Y) | -20.6% | -42.9% |
| Market cap | $80.2B | $2.3B |
| P/E (trailing) | 25.8 | 6.8 |
| Dividend yield | 2.26% | 2.67% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | ITW | KMT |
|---|---|---|
| 2022 | -8.5% | -31.0% |
| 2023 | +21.6% | +10.5% |
| 2024 | -1.0% | -3.9% |
| 2025 | -0.4% | +22.6% |
| 2026 | +15.8% | +8.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ITW and KMT good diversifiers for each other?
Only partially. A correlation of 0.61 means ITW and KMT 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 ITW and KMT?
The ITW/KMT correlation stands at 0.61 on a 3-year window (1 year: 0.61, 5 years: 0.66), computed from weekly returns as of 2026-08-27.
Is KMT a good diversifier for ITW?
Only partially. A correlation of 0.61 means ITW and KMT share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.61 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/itw-vs-kmt.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/itw-vs-kmt/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ITW correlations · KMT correlations
