ITW vs LECO: Correlation
Measured on weekly returns over the past three years, Illinois Tool Works (ITW) and Lincoln Electric Holdings, Inc. (LECO) 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 LECO?
Across a 3-year window, the weekly returns of ITW and LECO correlate at 0.68, strong. Recent behaviour matches the longer record: 0.67 over 1 year against 0.68 over 3. Stretching to 5 years gives 0.71, with an annualized covariance of 361.1 %².
Among the 81 assets we track against ITW, LECO ranks #16 by 3-year correlation. The trailing year gives LECO the advantage: +8.2% versus +18.4%, a 10.2-point spread.
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 LECO: side by side
| ITW (Illinois Tool Works) | LECO (Lincoln Electric Holdings, Inc.) | |
|---|---|---|
| 1-year return | +8.2% | +18.4% |
| 5-year return | +36.1% | +120.5% |
| Volatility (ann.) | 19.0% | 27.9% |
| Beta vs S&P 500 | 0.64 | 1.03 |
| Max drawdown (3Y) | -20.6% | -34.3% |
| Market cap | $80.2B | $15.8B |
| P/E (trailing) | 25.8 | 29.0 |
| Dividend yield | 2.26% | 1.08% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | ITW | LECO |
|---|---|---|
| 2022 | -8.5% | +5.4% |
| 2023 | +21.6% | +52.6% |
| 2024 | -1.0% | -12.6% |
| 2025 | -0.4% | +29.6% |
| 2026 | +15.8% | +21.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ITW and LECO good diversifiers for each other?
Only partially. A correlation of 0.68 means ITW and LECO 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 LECO?
As of 2026-08-27, the correlation of weekly returns between ITW and LECO is 0.68 over 3 years, 0.67 over 1 year and 0.71 over 5 years.
Is LECO a good diversifier for ITW?
Only partially. A correlation of 0.68 means ITW and LECO share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.68 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-leco.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/itw-vs-leco/)
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Related comparisons
Hubs: ITW correlations · LECO correlations
