ITW vs NDSN: Correlation
Illinois Tool Works (ITW) and Nordson Corporation (NDSN) show a strong relationship: their 3-year correlation of weekly returns is 0.67.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ITW and NDSN?
Across a 3-year window, the weekly returns of ITW and NDSN correlate at 0.67, strong. Lately the two have drifted apart, with the 1-year correlation at 0.51 versus 0.67 over 3 years. Stretching to 5 years gives 0.69, with an annualized covariance of 316.7 %².
By 3-year correlation, NDSN places #18 of the 81 assets tracked against ITW. The last year tells two different stories: NDSN led by 40.3 percentage points, +8.2% for ITW against +48.5% for NDSN. Stability stands out here, with the rolling one-year correlation confined to 0.61 through 0.80.
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 NDSN: side by side
| ITW (Illinois Tool Works) | NDSN (Nordson Corporation) | |
|---|---|---|
| 1-year return | +8.2% | +48.5% |
| 5-year return | +36.1% | +46.5% |
| Volatility (ann.) | 19.0% | 24.7% |
| Beta vs S&P 500 | 0.64 | 0.97 |
| Max drawdown (3Y) | -20.6% | -39.1% |
| Market cap | $80.2B | $18.4B |
| P/E (trailing) | 25.8 | 33.5 |
| Dividend yield | 2.26% | 0.98% |
| Sector / category | Industrials | Industrials |
Year-by-year returns
| Year | ITW | NDSN |
|---|---|---|
| 2022 | -8.5% | -5.9% |
| 2023 | +21.6% | +12.4% |
| 2024 | -1.0% | -20.1% |
| 2025 | -0.4% | +17.0% |
| 2026 | +15.8% | +38.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ITW and NDSN good diversifiers for each other?
Only partially. A correlation of 0.67 means ITW and NDSN 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 NDSN?
The ITW/NDSN correlation stands at 0.67 on a 3-year window (1 year: 0.51, 5 years: 0.69), computed from weekly returns as of 2026-08-27.
Is NDSN a good diversifier for ITW?
Only partially. A correlation of 0.67 means ITW and NDSN share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.67 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-ndsn.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/itw-vs-ndsn/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ITW correlations · NDSN correlations
