ITW vs KWR: Correlation
Measured on weekly returns over the past three years, Illinois Tool Works (ITW) and Quaker Houghton (KWR) carry a correlation of 0.68, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ITW and KWR?
Across a 3-year window, the weekly returns of ITW and KWR correlate at 0.68, strong. Little has changed lately, as the 1-year reading of 0.61 lands near the 3-year figure. Stretching to 5 years gives 0.65, with an annualized covariance of 442.3 %².
By 3-year correlation, KWR places #15 of the 81 assets tracked against ITW. Over the last 12 months KWR came out ahead by 6.9 percentage points (+8.2% against +15.1%). Note the risk asymmetry: KWR runs 1.8 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 KWR: side by side
| ITW (Illinois Tool Works) | KWR (Quaker Houghton) | |
|---|---|---|
| 1-year return | +8.2% | +15.1% |
| 5-year return | +36.1% | -32.5% |
| Volatility (ann.) | 19.0% | 34.3% |
| Beta vs S&P 500 | 0.64 | 1.16 |
| Max drawdown (3Y) | -20.6% | -55.3% |
| Market cap | $80.2B | $2.8B |
| P/E (trailing) | 25.8 | 29.4 |
| Dividend yield | 2.26% | 1.24% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | ITW | KWR |
|---|---|---|
| 2022 | -8.5% | -26.9% |
| 2023 | +21.6% | +29.1% |
| 2024 | -1.0% | -33.4% |
| 2025 | -0.4% | -0.8% |
| 2026 | +15.8% | +20.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ITW and KWR good diversifiers for each other?
To a limited degree. At 0.68 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 ITW and KWR?
As of 2026-08-27, the correlation of weekly returns between ITW and KWR is 0.68 over 3 years, 0.61 over 1 year and 0.65 over 5 years.
Is KWR a good diversifier for ITW?
To a limited degree. At 0.68 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 0.68 mean?
On the −1 to +1 scale, 0.68 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/itw-vs-kwr.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/itw-vs-kwr/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ITW correlations · KWR correlations
