ITW vs MSM: Correlation
Illinois Tool Works (ITW) and MSC Industrial Direct Company, Inc. (MSM) show a strong relationship: their 3-year correlation of weekly returns is 0.64.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ITW and MSM?
Across a 3-year window, the weekly returns of ITW and MSM correlate at 0.64, strong. Recent behaviour matches the longer record: 0.60 over 1 year against 0.64 over 3. Stretching to 5 years gives 0.63, with an annualized covariance of 306.7 %².
Within ITW's tracked universe of 81 assets, MSM comes in at #24 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months MSM outperformed by 29.9 percentage points (+8.2% for ITW against +38.1% for MSM).
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 MSM: side by side
| ITW (Illinois Tool Works) | MSM (MSC Industrial Direct Company, Inc.) | |
|---|---|---|
| 1-year return | +8.2% | +38.1% |
| 5-year return | +36.1% | +73.8% |
| Volatility (ann.) | 19.0% | 25.3% |
| Beta vs S&P 500 | 0.64 | 0.78 |
| Max drawdown (3Y) | -20.6% | -29.3% |
| Market cap | $80.2B | – |
| P/E (trailing) | 25.8 | 29.6 |
| Dividend yield | 2.26% | 2.84% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | ITW | MSM |
|---|---|---|
| 2022 | -8.5% | +0.9% |
| 2023 | +21.6% | +28.5% |
| 2024 | -1.0% | -23.4% |
| 2025 | -0.4% | +17.4% |
| 2026 | +15.8% | +49.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ITW and MSM good diversifiers for each other?
Only partially. A correlation of 0.64 means ITW and MSM 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 MSM?
As of 2026-08-27, the correlation of weekly returns between ITW and MSM is 0.64 over 3 years, 0.60 over 1 year and 0.63 over 5 years.
Is MSM a good diversifier for ITW?
Only partially. A correlation of 0.64 means ITW and MSM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.64 mean?
A reading of 0.64 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/itw-vs-msm.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/itw-vs-msm/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ITW correlations · MSM correlations
